After the start of the rehabilitation process for corporations, Homeplus Co., which has faced intensifying liquidity pressure, decided to additionally suspend operations at seven stores. Following last month's partitioning of salary payments, this month's pay will also be delayed.
On the 14th, Homeplus Co. told employees in a management message that "the cash situation, which has reached its limit, has not improved," and formalized the suspension of operations at seven stores: Munhwa, Busan Gamman, Ulsan Nam-gu, Jeonju Wansan, Hwaseong Dongtan, Cheonan, and Jochiwon.
Earlier, after the start of the rehabilitation process for corporations, Homeplus Co. decided to close 15 loss-making stores where rent adjustments had not been made as of August last year to improve cash flow as its finances worsened, but it put the plan on hold on the condition of easing transaction terms and other factors.
However, as finances deteriorated due to delivery delays and stoppages, it consecutively decided last month to suspend operations at 10 locations—Gayang, Jangnim, Ilsan, Woncheon, Ulsan Buk-gu, Gyesan, Siheung, Ansan Gojan, Cheonan Sinbang, and Dongchon. Including the seven additional closures decided on this day, a total of 17 stores will be shut.
Regarding employees at the stores suspending operations, Homeplus Co. said it "plans to guarantee employment by reassigning them to other stores."
In addition, Homeplus Co. told employees on this day that "because related consultations, including the union's consent to the restructuring plan demanded by the creditors, have not been finalized, we inevitably have to postpone the January salary payment."
It added, "We are doing our best to secure debtor-in-possession (DIP) financing through consultations with various stakeholders so that, no matter what, employee salaries are paid normally," and explained, "As soon as the DIP is secured, we will pay immediately."
Homeplus Co. also failed to make a single payment of salaries last month and made partitioning payments twice, on the 19th and 24th.