We are operating as usual.
At 12 p.m. on the 10th, Homeplus Co. Yatap in Bundang-gu, Seongnam, Gyeonggi. A notice like this was posted at the entrance. Contrary to expectations, the store was crowded with customers. Most of the self-checkout and staffed checkout counters were operating, and the lines to pay stretched long.
But the items in carts and baskets were different from usual. Instead of fresh foods like vegetables and meat, most were private-brand (PB) "Simplus" processed foods and household goods such as frying pans, flat-pack furniture, comforters, shampoo, diapers, and dish soap. As Homeplus Co., which is on the brink of bankruptcy, moved to clear inventory, consumers flocked in hopes of a "last-minute discount."
Signs reading "50% off" and "60% off" were posted throughout the store. Many of the prices applied to Homeplus Co. membership holders. Some customers stood out as they signed up for membership on their phones before paying or compared prices with other online shopping malls while adding items to their carts. Branded underwear and socks, imported tableware, and home appliances were also half off. Some products were priced at no more than 1,000 won.
A middle-aged couple who said they had been on their way to Asung Daiso Co. but stopped by Homeplus Co. said, "We came because we heard there are a lot of sales these days." A woman in her 30s who filled her basket with 500-won hand towels said, "A lot of items were out so I hadn't come for a while, but I heard the discounts have deepened and came back." When a customer asked about the location of ramen and some items, a worker replied, "The ramen is all gone. If it's not on the shelf, there's no stock."
Operations were continuing, but the gaps became more evident deeper into the store. Most of the leased stalls that sold jokbal, pork cutlets, snack foods, and rice cakes were empty, and on the shelves where ready-to-eat foods should have been displayed, instant coffee, gimjaban, and sauces were placed instead. On the prep counter, fans with discount stickers and large chocolate chip cookies were sparsely displayed.
On some shelves for items like ramen, canned goods, and wine, notices read, "Thanks to customers' support, all prepared quantities have sold out." The fresh-food section looked even barer. On the meat shelves, knives and scissors were displayed instead of meat, and plastic bowls sat on the egg racks. The live fish tanks in the seafood corner were empty, and the tank maintenance log listed the last seawater change as on the 29th of last month.
Store operations were effectively in emergency mode. Homeplus Co. employees were filling the gaps left by partner-company staff. One worker wore a temporary badge reading "Greeter" and handled customer guidance at the entrance, and cleaning staff or safety personnel were not readily visible. Asked about any gaps in facilities management staff, a worker said, "Please inquire with the company officially," declining further comment.
An employee who was going back and forth across the clothing racks to organize items said, "With word spreading that there are sales, the number of customers has surged in the past few days," and added, "I'm mainly restocking and checking inventory." The worker added, "There are no special directives coming down from headquarters."
Since the termination of rehabilitation proceedings, Homeplus Co. has faced uncertainty in securing operating funds, leading to supply disruptions, halted deliveries, and partner defections. According to the mart labor union, some items sold on a commission basis cannot be sold even if inventory remains in the store due to payment settlement issues. Employees are said to be stocking shelves mainly with inventory that can be sold.
Homeplus Co. is likely to enter bankruptcy proceedings if it fails to secure at least 200 billion won in operating funds and file an immediate appeal by the 20th. Major shareholder MBK Partners has not narrowed differences with Meritz Financial Group over additional operating-fund support. The Homeplus Co. union plans to meet MBK on the 14th to demand 200 billion won in funding support.