Homeplus Co. will permanently close 37 stores that have suspended operations since last month.
According to the retail industry on the 4th, Homeplus Co. said in an official letter recently sent to the labor union, "We have decided to close 37 stores that are currently shut due to low contribution." Starting on the 10th of last month, Homeplus Co. temporarily suspended operations at 37 of its 104 stores nationwide with low profitability. This was a step for management normalization.
With the temporary suspension now set as closures, Homeplus Co. will also conduct a voluntary retirement program for its employees. According to the union, about 3,500 Homeplus Co. employees work at the stores slated for closure. A Homeplus Co. official said, "We are not only operating a voluntary retirement program; we will also run employment stability support measures such as transferring and reassigning staff."
Homeplus Co. plans to pay three months of monthly salary. However, depending on immediate funding conditions, if financing issues are resolved, such as receiving Debtor-in-Possession (DIP) emergency operating funds, it plans to pay salaries and severance.