More than 13 foreign and domestic investors have handed in letters of intent to acquire South Korean cosmetics firm Skinfood, which is under court receivership, according to sources on April 19.

Although the company has around 44.5 billion won ($39.14 million) debt, investors appear to be keen to acquire it as it has solid retail channels in more than 19 countries, including in Sephora and Ulta Beauty in the US. Its corporate value is projected to be around 50 billion won.

According to industry sources, L&P Cosmetics, which owns the best-selling sheet masks brand Mediheal is keen to acquire the firm. It is currently expanding its presence globally using popular boy band BTS members as its main models.

A China-based strategic investor has also reportedly expressed interest and approached some local financial investors to acquire the firm, according to sources.

Established in 2004, Skinfood was ranked as one of the top three budget beauty brands here in 2010, with sales reaching 164.2 billion won. The company has been suffering losses since 2014, mainly due to competition, as it has lagged behind the fast-changing market trends here.

By Song Seung -hyun (ssh@heraldcorp.com)