Homeplus buyer search clouded by debt, labor challenges
Homeplus, which had been on the brink of liquidation, cleared a major legal hurdle with the court’s approval of its rehabilitation plan earlier this month. But while finding a new owner to continue the business is essential to Homeplus’ long-term recovery, it remains uncertain whether the company can attract a buyer given its substantial liabilities, labor-related challenges and a structural…
Homeplus, a struggling retailer on the brink of liquidation, has obtained court approval for its rehabilitation plan. However, finding a new owner to keep the business afloat remains uncertain due to several challenges. Industry officials have expressed doubts about Homeplus's ability to attract a buyer, citing its heavy liabilities, labor-related issues, and the ongoing retail slump.
In September, the Seoul Bankruptcy Court granted the retailer, owned by private equity firm MBK Partners, permission to implement the debt repayment and restructuring measures outlined in the plan. MBK's Vice Chairman and co-CEO, Kim Kwang-il, revealed at the meeting that after selling 19 defunct stores out of the company's 54 locations by February 2028, they intend to pursue a merger and acquisition strategy to clear the remaining debt. Ultimately, they aim to secure a full company sale to ensure Homeplus's long-term recovery.
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- Homeplus buyer search clouded by debt, labor challenges koreatimes.co.kr
