A Homeplus store in central Seoul. [Herald DB]
A Homeplus store in central Seoul. [Herald DB]

Homeplus, whose court rehabilitation proceedings have been terminated, said it will temporarily close its hypermarket stores starting Monday after running out of operating funds and becoming unable to maintain its facilities. Mall-section tenants who wish to continue operating will be allowed to do so.

"Our operating funds have been completely exhausted, leaving us unable to cover not only payments to suppliers but even basic operating costs such as utility bills needed to keep our stores running," the company said. "As we can no longer operate our stores normally, all headquarters and hypermarket locations will enter temporary closure starting Monday until circumstances change, in order to maintain security and safety."

The company added that mall-section tenants who wish to continue operating will be permitted to do so, and that it will take every precaution to ensure safety management and prevent accidents.

Earlier, the Seoul Bankruptcy Court on July 3 ordered the termination of Homeplus's rehabilitation proceedings but said it would reconsider extending the process if the company submitted a plan by July 20 to secure 200 billion won ($133 million) in emergency operating funds. Homeplus said it will monitor developments and await the court's final decision by July 20 before determining whether to resume operations.


korean@heraldcorp.com