Homeplus Co., which is undergoing a rehabilitation process, submitted its rehabilitation plan to the court on the 29th. The plan includes separating and selling its corporate supermarket (SSM) Homeplus Express and measures to restructure inefficient stores. It is also said to include a plan to raise 300 billion won.
According to the retail industry that day, Homeplus Co. announced a rehabilitation plan that includes raising about 300 billion won in debtor-in-possession financing and selling Homeplus Express to revive cash flow.
The 300 billion won in debtor-in-possession financing is funding for corporations under rehabilitation that is repaid ahead of existing creditors. For Homeplus Co., which is currently splitting employee salaries in half to pay them, resolving the working capital issue is urgent, and this is a measure to address it.
In the capital market, attention is on whether Homeplus Co.'s creditor group will vote in favor of the debtor-in-possession financing. Because the debtor-in-possession financing Homeplus Co. seeks to raise is to be repaid before existing creditors, members of the creditor group who have not secured collateral may oppose it.
In addition, Homeplus Co. proposed a separate sale of Homeplus Express. Homeplus Express has about 290 stores. In the past, GS Retail is said to have shown interest in Homeplus Express. However, there are concerns that a separate sale of Homeplus Express could reduce the asset's attractiveness. It means that if only hypermarkets remain, a sale could become more difficult.
It also specified stores for restructuring. Stores with low profitability will be closed, and workforce restructuring is expected to take place in the process. The Homeplus Co. labor union, which had previously expressed opposition to restructuring, earlier said, "We know the M&A process will not be smooth. We acknowledge that we will go through very painful steps, including restructuring."
The court will review and rule on the legal suitability of the rehabilitation plan for up to a week and then notify major creditors. The creditor group is then expected to coordinate for about a month and produce a final plan. Depending on whether creditors agree, the court will decide whether to approve the rehabilitation plan. The deadline for Homeplus Co.'s court receivership is Mar. 3, 2026.