Homeplus said, "It is impossible to normalize merely with some investments or management improvements, and the success of the currently ongoing 'pre-approval M&A' is the only solution for early normalization."
In a statement on the same day, Homeplus noted, "Last year alone, it incurred operating losses of over 400 billion won, and since entering the rehabilitation process in March this year, sales have continued to decline and fixed costs have remained burdensome, leading to increased losses."
In particular, it was highlighted that about 80 billion won in operating deficits occurred at the 15 stores that decided to close, with more than 70 billion won attributed to rent burdens. Homeplus stated that improvement in profitability is impossible unless the rent is adjusted, and if this structure is maintained, it will also be difficult to achieve pre-approval M&A.
Homeplus also emphasized the contribution of the major shareholder MBK Partners. The company said, "Since the acquisition in 2015, there has not been a single time dividends were received, and it has continued to invest around 1 trillion won in facility investments and transformed 33 stores into mega food markets over the past four years to enhance competitiveness," adding that "executives of the major shareholder have injected 100 billion won of their own money and have taken on guarantees of 200 billion won from shareholder companies, making a total of approximately 300 billion won in practical support."
In addition, Homeplus said, "In the court's investigative report, it was evaluated that assets (7 trillion won) exceed liabilities (3 trillion won), leading to a net worth of 4 trillion won for the shareholders. However, to ensure the success of the pre-approval M&A, the major shareholder even gave up rights to common stock worth 2.5 trillion won."
Homeplus claimed, "By applying for proactive rehabilitation, we prevented insolvency and embarked on the 'pre-approval M&A' process with the court's permission, overcoming two major hurdles. The final hurdle is the success of the pre-approval M&A. If this process fails, all efforts will be in vain, and the livelihoods of nearly 100,000 workers and partner companies could be at risk."
It added, "Homeplus and shareholder companies are making every effort possible for corporate rehabilitation, but it is also a clear fact that recovery is difficult with just the strength of the company and shareholder companies alone," urging that "active support and cooperation are requested to successfully conclude the pre-approval M&A."