At about 4 p.m. on the 3rd at a Homeplus Co. store in Seoul, employees began to move busily among customers shopping as usual. When one employee said, "How are we supposed to move all of this," other employees followed into an internal office. Moments later, the employees came back out, pushed large carts, spread throughout the store, and began packing displayed products into boxes.
At the dried foods section, employees transferring seaweed and other items into boxes said, "How long will it take to pull everything out," and "Do we have to come to work tomorrow too." Large carts were not enough, so employees even mobilized customer carts to keep loading and carrying away displayed goods without stopping. Customers, taken aback by the sudden change in atmosphere, looked back and forth between the checkout counters and the emptying shelves.
Right after the Seoul Bankruptcy Court decided to terminate Homeplus Co.'s corporate rehabilitation proceedings that day, some stores began removing displayed products. If the funding problem is not resolved within 14 days, Homeplus Co. is likely to effectively head toward bankruptcy.
◇Emptying shelves… partners "requesting product withdrawal"
The side dishes section, where deliveries had not taken place, was filled with ceramic products, but even those were emptied in 30 minutes. When asked why products were being pulled, an employee said, "It seems to be at the request of partner suppliers," and hurried away.
Only ice remained in the frozen food display case. The household goods section where socks had been placed was also emptied. Even private brand (PB) products did not fill the shelves and were placed in only one or two rows.
Some customers who came to the store asked, "Are you closing right now." Employees only answered, "We're not sure." Of the seven manned checkout counters, only one was available for payment. Even there, with few customers, the beep of the barcode scanner was heard only occasionally.
◇"I went, wondering if this would be Homeplus Co.'s last day"
On online communities and social media (SNS), word quickly spread that Homeplus Co. could ultimately shut its doors. As a big-box mart that has supported Korea's retail market for 30 years, posts expressing regret followed.
An internet user posted store photos on SNS, saying, "I went, wondering if this would be Homeplus Co.'s last day." The person wrote, "The CM jingle 'Homeplus prices are good' still seems to ring in my ears."
Another internet user who said they had used the Homeplus Co. near their home for 10 years said, "I even recognize the employees' faces now," and added, "We've grown attached over the years, and now I'm worried about what will happen to them."
A person identified as A, who recently visited a Homeplus Co. store, also said, "As I finished paying, an employee told me, 'Take the hanger too,'" and added, "Normally I would have just heard it and moved on, but I felt strange thinking, 'There won't be a next time now.'"
◇An immediate appeal remains… funding within 14 days is key
The Rehabilitation Division 4 of the Seoul Bankruptcy Court (Chief Judge Jeong Jun-young) decided that day to terminate Homeplus Co.'s rehabilitation proceedings. It has been 1 year and 4 months since Homeplus Co. applied to commence corporate rehabilitation proceedings.
The core reason the court decided to terminate the rehabilitation proceedings was a failure to secure funding. Homeplus Co. had to raise 200 billion won as the minimum funds to implement its rehabilitation plan, but it failed to secure the money. MBK Partners, Homeplus Co.'s largest shareholder, and Meritz Financial Group, its largest creditor, have been trading barbs over responsibility for funding.
Homeplus Co. can file an immediate appeal within 14 days. However, to overturn the termination of rehabilitation, the funding issue must be resolved. The industry expects that if the termination is finalized, Homeplus Co. will proceed to file for bankruptcy.
Labor unions called for government support. The Korean Confederation of Trade Unions (KCTU) Mart Industry Union issued a statement that day, saying, "Within 14 days, prepare a plan to revive Homeplus Co. through all possible emergency measures, including the injection of public funds," and, "We will launch 14 days of emergency action."
The Homeplus Co. general union also said, "MBK Partners and Meritz Financial should immediately inject 200 billion won within 14 days," and, "The government should prepare measures for 100,000 people whose livelihoods are at stake due to the Homeplus Co. situation."