Overview
- Homeplus said Monday it temporarily closed its Seoul headquarters and 67 hypermarkets after operating funds were exhausted and the company could not pay suppliers or cover basic store costs.
- The Seoul Bankruptcy Court terminated Homeplus’s court-led rehabilitation on July 3 after the retailer failed to secure at least 200 billion won required for its self-rescue plan.
- The company has asked its largest creditor, Meritz Financial Group, for a 200 billion-won emergency working-capital loan but Meritz has not agreed to provide the funds.
- If Homeplus cannot obtain financing and win a court appeal to reinstate restructuring, creditors are likely to push toward asset sales or liquidation, which would threaten thousands of jobs and supplier contracts.
- The collapse follows years of falling foot traffic and a consumer shift to online grocery and rapid-delivery services while the chain has operated under private equity owner MBK Partners since 2015.