Homeplus Co. on the 9th again requested emergency operating funds.
Homeplus Co. said in materials distributed that day that "since the start of the rehabilitation process, the company has focused on improving business performance and profitability so potential buyers would take interest," and noted that emergency operating funds are needed to pursue rehabilitation through a sale.
Homeplus Co. said its network of 126 hypermarket stores had been shifted to a system centered on 67 core stores, and that rents at leased stores were lowered to the 20%–40% range through talks with landlords. It said it simplified its business structure by selling the supermarket division Homeplus Express to NS Shopping, and, in the process, reduced its headcount from 18,000 to about 9,000.
Homeplus Co. said, "The most urgent task now is to secure operating funds that will allow us to maintain stable operations until the sale process is completed and to finish our restructuring," adding that emergency operating funds are needed for normal operations such as purchasing goods and paying partners, as well as for pursuing mergers and acquisitions (M&A). The company estimates it needs about 200 billion won.
Emergency operating funds for Homeplus Co. require the consent of Meritz Financial, Homeplus Co.'s largest creditor. Meritz Financial is the largest creditor, having lent 1.2 trillion won to Homeplus Co. Meritz has proposed a joint guarantee from majority shareholder MBK Partners and management to persuade shareholders and avoid allegations of breach of duty, but talks have not progressed. In response, Homeplus Co. said management has no further capacity, noting that Chair Kim Byung-ju of MBK has already provided a residence as collateral.