Gfriend's "disbandment" is due to the agency going bankrupt??

[YeoChin Fairies]

Not that I know a thing, I really hope that they will sign somewhere else, rebrand, or somehow stay together idk... But most people know that even if Gfriend wasn't as big as 2016, they were doing moderately well. They were source music's breadwinners and they always talked about a long run (Shinhwa was always mentioned as their role model)

 

Apparently people on Twitter say that the BigHit acquisition got SouMu to get in huge debt and many employees are leaving and some say they might close

 

 

[YeoChin Fairies]

2 minutes ago, WhateverBitch said:

I'm not going to pretend I know anything about business, but why did they go bankrupt after being acquired? Shouldn't have happened the opposite? Acquisition usually is the way most small companies take to survive/pay debts. 

This is very odd to me... 

That's also the first question which popped to my mind. I read somewhere else that they borrowed 8M from Big Hit last year so that could also be the case for bankrupcy. Gfriend was highly dependent on touring in the past few years and the pandemic restricted them a lot. 

[YeoChin Fairies]

3 minutes ago, sergel said:

there were signs or hiatuses, or they do a farewell gift like Sistar. This had neither.

I know right, I am a Kpop stan from second generation and I have seen so many groups disband (including my past faves) and I say it surely that NONE were as random as this. I am not delulusional, to think that they would last 20 years just because they are my faves. But this surely was not the time for it. Other thing to keep in mind is that popular groups which disband usually have members which are famous individually, but Gfriend was still very dependent on their group brand in their 7th year. 

[YeoChin Fairies]

11 minutes ago, Belkiss said:

it doesn't make sense

Gfriend latest releases were produced by Bighit producers, am I wrong? 

I believe so but the promos were still managed by SouMu

[YeoChin Fairies]

30 minutes ago, Danee Danee said:

Arent Big Hit and Sorce Music under same mother company now basically? Makes no sense to kick GF out even if Source was unable to pay the debt. In that case they would end the company/label and replaced Gfriend under different one since they are still profitable. Only way how to do so would be if they offered highly unfair contracts to the group so they declined. 

I'm supposing that could be the case also, it is very hard to wait until the members clear it up but at the same time they may never even say something for the sake of the group's name

 

[YeoChin Fairies]

1 minute ago, lighterxx said:

They probably agreed on terms they shouldnt when acquisation is happening, soumu perhaphs terminated gfriend's contract for their own good then? Its not easy to stuck in a company in bankrupt state as an artist to my knowledge, everything i read sounds worse than woollim x sm tho wow 

Yes, I suppose they didn't want the members to be stuck in debt with them, It would be beyond tragic if that happened...

[YeoChin Fairies]

2 minutes ago, satoori said:

after the acquisition bighit loan somu money and invested a load into gfriend (as we can see by last year promos) and even trusted somu to help with the new upcoming girl group

however i don't know what's going on now o.o

somu was surviving off of one group. a girl group who was mainly publicly friendly. who was just starting to step towards touring (where the money is at..) before the outbreak...basically somu was struggling even before bighit

i'm still hoping gfriend isn't disbanding tho..TT

I remember that in 2016, Source was reported to be the 8th Kpop agency to have made the most money that year and that happened with Gfriend as their only artist. I know Gfriend slowly declined digitally but tbh I'm supposing the money that they made off of touring has to be much more than what they made from their digital hits. I wonder where everything went wrong and why would they ask for such a huge loan. Gfriend was already established, so maybe they wanted to invest on trainees or debut a new gg...

[YeoChin Fairies]

10 minutes ago, GetRapper said:

This is actually quite possible, I didn't think of this. Companies usually find ways to clear their liabilities and this is one of the methods.

Boy... that is so messed up if the case because the two CEOs were supposedly close... What type of friend would do that.  

[YeoChin Fairies]

1 minute ago, satoori said:

it's interesting people are turning the finger towards bh (hybe)...

i doubt this is the case. it doesn't add up. bh/hybe is one the most profitable entertainment companies right now in korea.

instead i can see somu throughout the years getting more into debt and now stuck. perhaps bighit thought they could bail them out but...welp..

@GetRapper @YeoChin Fairies

i wonder if somu will still be part of the upcoming girl group project o.o??

That user's opinions have always been fun to read but usually not really taken seriously. I find it a bit shocking that some people are buying that lol. I don't think that is the case, the CEOs are friends (although I can't say for 100% that all friends are loyal)

Being in debt doesn't necessarily mean that an agency is in verge of bankruptcy, all for I know, Pledis is in a bigger debt now. It's definitely easier for them to pay ofc, they have 2 boy groups. Seventeen is huge and I suppose even Ne'uest makes more money than Gfriend despite being smaller with the public, because well they are a bg. 

Idk what is going on inside their agency that they saw paying that debt impossible to this level. Who knew if the new gg would be big enough to pay it.... With what K-buddies are saying on twitter, debuting a new gg seems impossible at this point. 

[YeoChin Fairies]

3 minutes ago, My Everything said:

Have the girls responded yet?

What are they waiting for….

Perhaps just waiting for 22nd, gonna be hell for buddies tbh

[YeoChin Fairies]

Btw this info was released by HYBE in March

 

Currently, Pledis Entertainment has a debt of 29 billion KRW (25.7 million USD). On the other hand, Source Music has a debt of 12.9 billion KRW (11.45 million USD). Source Music also received a loan of 7.5 billion KRW (6.65 million USD) from Big Hit.

Currently, Pledis Entertainment has a debt of 29 billion KRW (25.7 million USD). On the other hand, Source Music has a debt of 12.9 billion KRW (11.45 million USD). Source Music also received a loan of 7.5 billion KRW (6.65 million USD) from Big Hit.

[YeoChin Fairies]

6 hours ago, bzz said:

 

What are they saying?

That the agency is almost closing. I don't see the big deal, let HYBE themselves debut the freaking new gg. We lost what we cared about the most.

[YeoChin Fairies]

2 minutes ago, headway said:

Umji's father is/was the CEO of some dental group.

he has around 40 dental clinics in South Korea. No he didn't invest in the agency, that's such a dramatic thing to say. 

[YeoChin Fairies]

Boy this does hurt like a bitch or something. Ait I'm done with Kpop forever. Once my previous faves disbanded I was already into new ggs, but now everything in Kpop seems generic as hell to me.

[YeoChin Fairies]

Or perhaps just their contracts were unfair.... their letters sound like they didn't want this at all