The Homeplus Co. general labor union welcomed the decision by Meritz Financial and MBK Partners to provide 200 billion won in emergency debtor-in-possession (DIP) operating funds. The union also urged management to adopt strong self-rescue measures and practice accountable management.
On the 16th, the Homeplus Co. general union issued a statement, saying, "A priming water for revival has been secured for Homeplus Co., which was standing on the brink," and "Now the ball is in the court of Homeplus Co. management."
The union said, "Since the commencement of corporations rehabilitation proceedings in Mar. last year, on-site workers have endured a long and painful 1 year and 4 months," and "Before the start of rehabilitation, the number of direct and indirect workers reached 23,000, but it has fallen to around 10,000; despite staying on the ground through five rounds of delayed wage payments, Homeplus Co. effectively came to a halt due to paralysis at logistics centers and the exodus of indirect workers."
The union continued, "Responding to mediation efforts by the National Assembly and the government and to the union's voice, Meritz Financial and MBK agreed to the 200 billion won DIP support," adding, "This funding will be a precious priming water for revival that will lift Homeplus Co. on the verge of bankruptcy, as well as small business owners and on-site workers, back on their feet."
Aiming at management, it said, "You must immediately carry out bone-cutting self-rescue measures," and warned, "If the hard-won funds are once again squandered through lax management, Homeplus Co. will fall into an irretrievable abyss." It also said, "All expense must be reduced immediately, and strong, practical structural reforms such as deploying headquarters staff to the field and downsizing regional headquarters must be implemented."
The union added, "If management responsibly executes the rehabilitation funds and joins the renewal, the union will also do its utmost and actively cooperate to rebuild the field and normalize operations," and said, "The government should also step up with practical policy support for tenant businesses, small business owners, and suppliers."