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

Homeplus said Wednesday it will focus on normalizing operations and restructuring after the Seoul Bankruptcy Court reversed its decision to terminate the company's rehabilitation proceedings and extended them through Sept. 4.

The retailer plans to reopen all 67 of its key stores currently under temporary closure as soon as debtor-in-possession loan funds arrive. It will prioritize selling everyday essentials with high sales volume and fast turnover to improve cash flow. The online division will begin operations at 16 stores in the Greater Seoul area where delivery can resume immediately, with plans to expand the service area through negotiations with delivery partners.

Homeplus will also make priority payments for essential operating costs, including product payments, overdue rent and utility bills. Employee wages and outstanding payments owed to small vendors will be settled in parallel to minimize the impact on workers and store operators.

"We will complete all restructuring work within the allotted period and move forward in earnest with the sale process," the company said, adding that it also plans to close the 37 underperforming stores currently under temporary closure during the remaining rehabilitation period.

Meanwhile, the company plans to cut costs by keeping staffing to a minimum at both its headquarters and stores. Employees not on active duty will remain on leave for now.


andy@heraldcorp.com