Key facts
- A Seoul court approved a corporate rehabilitation plan for Homeplus Co.
- The plan was approved after creditors and shareholders voted in favor.
- Homeplus filed for rehabilitation last year due to liquidity concerns.
- The plan involves scaling down the business, selling stores, and repaying debts.
- Homeplus aims to sell 19 closed stores by February 2028 to repay 1.3 trillion won in debt.
A Seoul court has approved a corporate rehabilitation plan for Homeplus Co., the discount store chain owned by private equity firm MBK Partners. The approval comes after creditors and shareholders voted in favor of the plan during a meeting.
Homeplus had filed for corporate rehabilitation in March of the previous year due to declining credit ratings and liquidity concerns. The approved plan focuses on securing profitability by scaling down the business, concentrating on profitable stores, and selling some outlets to generate proceeds for debt repayment.
Under the plan, Homeplus aims to sell 19 closed stores by February 2028 to repay a portion of its 1.3 trillion won (US$950 million) in debts. The retailer had temporarily closed its outlets starting July 13 due to a lack of operating capital.
The union of Homeplus expressed hope that the court's approval marks the beginning of the retailer's operational normalization.