Seoul, July 13 (SocialNews.XYZ) Financially troubled discount store chain Homeplus said on Monday it has decided to temporarily close its outlets, starting Monday, due to a lack of operating capital and difficulties in maintaining store operations.
The decision came after the Seoul Bankruptcy Court terminated Homeplus' rehabilitation proceedings on July 3, saying the company had failed to secure at least 200 billion won (US$130 million) needed to carry out its self-rescue plan.
The retailer, wholly owned by private equity firm MBK Partners, has been financially strapped by a prolonged slump in the discount store industry and entered court-led rehabilitation in March 2025.
Homeplus has asked its largest creditor, Meritz Financial Group, to provide a 200 billion-won working capital loan, but its request has yet to be accepted.
"Most of our operating funds have been completely exhausted, leaving us unable to make payments to suppliers or cover operating expenses needed to keep our stores open," a company official said.
He said both Homeplus' headquarters and all discount stores will suspend operations starting Monday to ensure security and safety until circumstances change.
MBK Partners acquired a 100 percent stake in Homeplus from British retailer Tesco Plc in 2015 for 7.2 trillion won.
Earlier, the government reviewed the progress in rolling out supportive measures for workers of the troubled supermarket chain Homeplus Co. after a court decided to terminate its rehabilitation proceedings, the finance ministry said.
First Vice Finance Minister Lee Hyoung-il chaired a task force meeting to review the progress in implementing support measures for affected workers and subcontractors after vowing last week to provide up to 21 million won ($13,980) in substitute payments for unpaid wages.
The government said the labour ministry received 692 inquiries and provided information on available support programmes.
The task force also identified 33.3 billion won in unpaid wages for June and vowed to closely monitor any additional delays in wage payments.
South Korea also offered low-interest loans of up to 10 million won at a rate of 1.5 percent within the amount of their unpaid salaries.
—IANS
na/
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz