Homeplus [Newsis]
Homeplus [Newsis]

Homeplus stores have in effect entered emergency operating mode after outsourced facility management and cleaning workers abandoned their posts as the hypermarket chain teeters on the edge of bankruptcy.

Following the court's decision to terminate rehabilitation proceedings, indirect-employment workers who had handled parking, cleaning and facility management at Homeplus stores lost their jobs, and directly employed staff have been filling in for them, according to Yonhap News Agency.

Deliveries of a significant number of fresh food and liquor items have been cut off, and even goods already received cannot be sold due to unresolved payment settlement issues.

A union official said staff are unable to sell certain products even when they are on the shelves. "Items sold on a commission basis cannot be sold even if the stock is there," the official said. "Employees are stocking shelves only with inventory that can actually be sold."

Homeplus is keeping its doors open by selling remaining stock of its private-label brand, Simplus.

Its same-day fresh food delivery service, Magic Delivery, has also been suspended.

While Homeplus still has time to file an immediate appeal if it can secure funding, some observers say the chain could be forced to halt operations as soon as this weekend, given that stores are already running in emergency mode.

Directly employed Homeplus staff are managing facility operations on a stopgap basis, and some argue that if the company cannot raise funds, stores should be shut down for customer safety.

This month's mandatory hypermarket closure day falls on Sunday, July 12, and there is speculation that Saturday, July 11, could effectively be Homeplus's last day of trading.

Homeplus must secure 200 billion won in operating funds and file an immediate court appeal by July 20, or face bankruptcy proceedings. MBK Partners and Meritz have made no progress in narrowing their differences over an additional 200 billion won in support.

"There are those who say we should shut down, and those who say we should keep going as long as we can," an industry official said. "No one knows when or how the situation will change."


husn7@heraldcorp.com