Homeplus Co. said on the 8th that it has paid all wages due through May that were delayed because of a cash crunch.
Homeplus Co. issued a statement the same day, saying, "Because of the cash situation, monthly salaries have been paid late since December last year, and the cumulative aggregates of salaries paid late through June is 141 billion won," adding, "All salaries through May have been paid, and currently only 33.2 billion won for June remains unpaid."
It appears the company paid a significant portion of the overdue wages after proceeds from the sale of the Homeplus Express business unit, a corporate-style supermarket (SSM), came in recently. The company has paid employee salaries abnormally as the rehabilitation process dragged on.
Homeplus Co. added, "Even in a situation where paying for goods is most needed to normalize operations, we are doing our best to prevent prolonged delays in employee salaries," and "We plan to continue doing our best during the rehabilitation process to minimize harm to employees."
Earlier, the Seoul Bankruptcy Court decided on the 3rd to terminate Homeplus Co.'s corporate rehabilitation proceedings. Homeplus Co. can immediately appeal if it raises operating funds within 14 days from the date of the decision, and if a justifiable reason is recognized, the termination decision can be canceled. However, if it does not appeal, the decision to terminate the rehabilitation proceedings will be finalized, increasing the likelihood that it will enter bankruptcy proceedings.