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

Homeplus plans to reopen around Aug. 10, starting with stores in the Greater Seoul area before rolling out across all 67 of its locations nationwide.

Industry sources said Tuesday that Homeplus held separate meetings with its mart union and general union that day to share its reopening schedule and business direction.

At the meetings, company representatives said 200 billion won ($136 million) in debtor-in-possession financing approved by its largest creditor, Meritz Financial Group, is expected to arrive between Friday and Aug. 3, with stores set to reopen within seven days of the funds coming in. That would put the reopening on either Aug. 7 or Aug. 10.

Homeplus suspended store operations on July 13, ten days after a court ruled to terminate its rehabilitation proceedings. The company has since said it intends to resume operations following the court's decision to restart the proceedings after the DIP loan was approved.

Homeplus plans to reduce retail floor space at each store to between roughly 2,000 and 3,300 square meters and sharply cut the range of products it carries, focusing on food, fast-moving daily necessities and private-brand items. The company has cited US retailer Trader Joe's as its model. Staffing levels are also expected to be reduced and reorganized to reflect each store's situation and employees' preferences.

The company's central purchasing team is in talks with fresh and processed food suppliers, while also working to secure distribution centers and recruit logistics drivers. The online retail operation is also preparing to resume in tandem with the store reopening. Homeplus is also in discussions with tenant businesses about reducing commission fees for in-store leased spaces.

The reopening represents the final test for court approval of Homeplus's rehabilitation plan. The court earlier decided to restart the rehabilitation proceedings and extended the deadline for plan approval to Sept. 4 — the last permissible extension under current law.

The incoming DIP funds will be used primarily to restore product supply. A portion is also earmarked to cover unpaid severance and wages owed to former employees.


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