It was confirmed on the 9th that Homeplus Co. elevated five headquarters departments to divisions and promoted six people right after it reopened 67 stores nationwide last month and reorganized its structure. Some say that, with the court's approval of the rehabilitation plan imminent and the company standing at a crossroads for survival, it focused more on securing internal posts than on normalization.
According to an internal Homeplus Co. document obtained by ChosunBiz, the company carried out an organizational reshuffle and personnel appointments effective Aug. 16. The appointments affected 36 people.
Five units were marked as elevated in the personnel order. The sales HR oversight and sales innovation oversight were merged and elevated to the Sales HR Division, brand marketing oversight was elevated to the Brand Marketing Division, and fresh processing oversight was elevated to the Fresh Processing & NFG Division. The fisheries team and livestock team were consolidated into the Fisheries & Livestock Division, and the audit team was elevated to the Audit Division. The five people in charge of these five divisions were promoted to executive director, and one former store manager was promoted to Director General.
In a notice the same day, Homeplus Co. reduced the existing eight regional divisions to six. It disbanded teams including the SCM planning team and consolidated some teams. While shrinking field organizations, it increased higher corporate ranks at headquarters.
Homeplus Co. says the move was meant to fill gaps that arose during rehabilitation. A company representative said, "The personnel changes were to replace those who left during the consolidation of organizations."
Still, internal reactions suggest it is hard to accept. Homeplus Co. formally resumed operations at the 67 stores that had been temporarily closed due to a liquidity crisis on Aug. 13. Before the court approved the rehabilitation plan, personnel changes were made just three days after reopening.
Excluding those on leave, about 3,700 employees are estimated to be working at the 67 stores now. With headcount and stores drastically reduced, some say it is hard to accept elevating units and granting promotions when even scaled-back operations would fall short. A Homeplus Co. employee said, "Employees are bearing the losses, saying they will receive back pay and severance later, with a single-minded determination to save the company," and added, "In this situation, is expanding the organization and promoting people what a rehabilitating corporations should be doing?"
Homeplus Co. received court approval for a revised rehabilitation plan at the Seoul Bankruptcy Court on Sept. 2. It came a year and six months after it entered rehabilitation proceedings in Mar. last year. Still, repaying more than 500 billion won in priority claims, selling stores, and normalizing operations remain tasks. Homeplus Co. plans to sell 19 owned stores and pursue mergers and acquisitions (M&A) to secure funds for repayment.