[비즈한국] It has been confirmed that the Enter-6 Wangsimni branch has received a lease termination notice from its landlord following rent arrears and complications with collateral loan repayments. Although the lease contract ended last July, the debt settlement process remains unresolved. Amid a series of provisional attachments regarding the remaining deposit and even an application for voluntary auction filed by a creditor against property owned by the landlord, the conflict over claims is intensifying.
Failing to Repay Loans and Rent… Still Operating for Now
It has been confirmed that the lease contract for the 'Enter-6 Wangsimni branch,' which had established itself as a landmark shopping facility at Wangsimni Station, has been terminated. According to Bizhankook’s reporting, BitPlex, the operator of the Wangsimni private station, notified Enter-6 Fashion Mall of the lease termination in July.
A BitPlex official stated, "Enter-6's contract was terminated effective July 6. We are currently coordinating with the existing tenant businesses, allowing those who wish to continue operations to remain for the time being."
The background to the contract termination appears to be rooted in Enter-6's financial difficulties. According to BitPlex, Enter-6 failed to repay the principal on collateral loans borrowed from financial institutions, leading to an event of default. An event of default means that because the loan agreement was not met, the remaining loan balance must be repaid immediately, even before maturity.
Subsequently, the financial institutions requested that BitPlex pay off the loans using the deposit held by Enter-6, and BitPlex paid a portion of the deposit to the lenders. A BitPlex official explained, "The deposit Enter-6 had with BitPlex was around 30 billion won. In accordance with the financial institutions' request, we paid a significant portion of the deposit to them, which led to the termination of the lease. The remaining deposit is currently around 5 billion won."
It appears that Enter-6’s financial situation has been difficult since the end of last year. According to BitPlex, Enter-6 began falling behind on rent for the Wangsimni branch late last year. A BitPlex official stated, "There are significant unpaid amounts including rent, management fees, and restoration costs," adding, "While there is about 5 billion won left in the deposit, we believe there will effectively be almost nothing left for Enter-6 to recover once all related costs are settled."
Provisional Attachments and Auction Filings Over Remaining Deposit
Although the contract was terminated in July, Enter-6 has not fully vacated the premises while settlement issues, such as the return of the deposit, remain unfinished. When visiting the Enter-6 Wangsimni branch on the 6th, the interior decor and signage remained intact, showing no significant visual difference from before the contract termination. It appears that the store withdrawal and closure procedures will only proceed once the debt relations, including the return of the deposit, are resolved.
However, the debt situation has become complicated as other creditors have begun exercising their rights over the remaining deposit. Enter-6 had previously established collateral rights on certain properties of the Wangsimni private station in preparation for the return of the deposit, and subsequently, other creditors of Enter-6 have placed consecutive provisional attachments on those mortgage-backed claims. In fact, in August, applications for provisional attachment of mortgage-backed claims worth 1.272 billion won and 1.275 billion won, respectively, were filed, and both were granted by the court.
Following the provisional attachments, some creditors filed for a voluntary auction of parts of the Wangsimni private station property. According to the property register, a decision to initiate a voluntary auction for parts of the basement and first floor of the Wangsimni private station, where Enter-6 was located, was issued on September 18.
A BitPlex official said, "We are in a situation where we cannot pay the deposit because there are multiple provisional attachments on the claims, and in the process, creditors have filed for a voluntary auction," adding, "We have filed an objection, and we expect the auction process to be suspended soon."
Enter-6 is a fashion shopping mall themed after European streetscapes. It opened its first branch at COEX in 2004 and currently operates 6 locations, including the Wangsimni, Sangbong, and Gangnam branches. After the first COEX branch closed in 2013, the Wangsimni branch—which opened in 2008—had remained the oldest store, but this lease termination effectively marks the beginning of its closure process.
Enter-6 aggressively expanded its stores in the 2010s, recording a peak revenue of 62.5 billion won in 2019. However, its growth momentum stalled starting in 2020, and it has since faced a trend of deficits. Last year's revenue was 41.7 billion won, a decrease of about 33% from 2019, with an operating loss of 1.6 billion won.
Bizhankook reached out to Enter-6 Fashion Mall to inquire about the current status of the store and the background behind the termination of the Wangsimni branch lease, but did not receive a response.