Homeplus, which is undergoing corporate rehabilitation procedures, will begin restructuring focused on stores where there has been no progress in rent negotiations. At the same time, it has introduced an unpaid leave system for headquarters employees and has embarked on high-intensity expense reductions.
According to the retail industry, Homeplus has decided to sequentially close 15 stores out of a total of 68 rental locations that are experiencing difficulties in rent adjustment negotiations.
The targeted stores include Siheung, Gayang, Ilsan, Gyesan, Ansan Gojan, Suwon Woncheon, Hwaseong Dongtan, Cheonan Sinbang, Munhwa, Jeonju Wansan, Dongchon, Jangrim, Busan Gamman, Ulsan Bukgu, and Ulsan Namgu.
Starting from the 1st of next month, unpaid leave will be implemented for all headquarters employees who wish to participate. The measure to partially return executive salaries, which has been in effect since March, will also be extended until the rehabilitation process is completed.
This action is seen as a response to heightened liquidity pressures, five months after the decision to initiate rehabilitation was made.
In response, Ahn Soo-yong, the head of the Homeplus branch of the Mart Union, noted, "Major shareholder MBK Partners is shifting the burden onto stores and employees without making self-rescue efforts," adding that "the reduction of stores will ultimately lead to a decline in brand value."
Last month, Homeplus received court approval to proceed with M&A (mergers and acquisitions) procedures before rehabilitation plan approval and is concurrently carrying out sale operations.