Homeplus Co. said on the 25th that "under the rehabilitation plan submitted to the court, expense reductions and improvements in business viability are showing visible results," adding that "an extension of the rehabilitation process is needed so we can complete the ongoing structural reform plan."
Homeplus Co. projected that the number of employees will fall about 17.4%, from 19,924 as of Feb. 2025, before the start of rehabilitation, to 16,450 in Apr. 2026. The resulting labor cost savings would be about 160 billion won.
It also plans to close 19 of the 41 stores slated for disposition within this year. Homeplus Co. said the improvement in operating profit from rent adjustments and the cleanup of underperforming stores will top 100 billion won.
Homeplus Co. said, "If we complete all the planned structural reform measures without setbacks and normalize operations, a turnaround to operating profit will be possible in 2028."
Regarding the sale of the supermarket institutional sector (Homeplus Express), which is underway to improve the financial structure and secure operating funds, the company said, "There will be visible results soon."
Homeplus Co. added, "If the supermarket institutional sector is sold and the largest shareholder, MBK Partners, first executes 100 billion won in debtor-in-possession (DIP) financing as emergency operating funds, the likelihood of normalization will increase further."
Recently, MBK indicated it would prioritize injecting 100 billion won in DIP into Homeplus Co. It said it would move preemptively to provide funding regardless of whether other stakeholders, such as Korea Development Bank and Meritz Financial Group, participate.
The deadline to approve Homeplus Co.'s rehabilitation plan is on the 4th of next month. The court plans to review the feasibility of the rehabilitation plan based on stakeholders' opinions and then decide whether to dismiss the plan and whether to continue the proceedings.