Key facts
- Homeplus Co. is temporarily closing all its outlets starting Monday.
- The closure is due to a lack of operating capital and difficulties in maintaining store operations.
- The Seoul Bankruptcy Court terminated the company's rehabilitation proceedings on July 3.
- Homeplus failed to secure the 200 billion won (US$130 million) required for its self-rescue plan.
- The company has exhausted most of its operating funds.
Financially troubled discount store chain Homeplus Co. announced on Monday, July 13, 2026, that it will temporarily close all of its outlets starting the same day. The decision stems from a severe lack of operating capital and difficulties in maintaining store operations.
The company's financial struggles led the Seoul Bankruptcy Court to terminate its rehabilitation proceedings on July 3. This termination occurred because Homeplus failed to secure the necessary 200 billion won (approximately US$130 million) required to implement its self-rescue plan.
Homeplus, which is wholly owned by private equity firm MBK Partners, has been grappling with a prolonged downturn in the discount store industry since entering court-led rehabilitation in March 2025. The retailer has approached its largest creditor, Meritz Financial Group, seeking a 200 billion-won working capital loan, but this request has not yet been approved.
A company official stated that "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." Consequently, both Homeplus' headquarters and all its discount stores will suspend operations until circumstances improve, ensuring security and safety.
MBK Partners originally acquired a 100 percent stake in Homeplus from British retailer Tesco Plc in 2015 for 7.2 trillion won.