Homeplus' recovery falters as sales slump, buyer search stalls

Homeplus, a major supermarket chain in South Korea, is facing difficulties in its recovery efforts as sales continue to decline and potential buyers remain hesitant, according to industry experts. The company narrowly avoided liquidation and resumed operations in August, but weak sales and stalled takeover efforts are clouding its prospects for a strong comeback, officials said on Monday.

The uncertainty has led to a significant number of employees voluntarily resigning from their positions. Homeplus is currently undergoing court-led rehabilitation after years of struggling in the hypermarket sector, which is declining, and as consumers increasingly turn to online shopping. In July, the Seoul Bankruptcy Court temporarily halted proceedings due to the retailer's failure to secure the minimum 200 billion won in new funding required for its restructuring plan.

However, Homeplus managed to secure emergency financing from Meritz Financial Group, its largest creditor, just in time to avoid liquidation. The company reopened all 67 of its remaining stores nationwide on August 13th, with the hope of kickstarting its recovery. Sales initially reached 10.63 billion won on the first day, followed by a daily average of 8.7 billion won in the following days, but the overall trend remains concerning.