Homeplus' recovery falters as sales slump, buyer search stalls
Homeplus, which narrowly avoided liquidation and resumed operations in August, is struggling to regain its footing as weak sales and stalled takeover efforts cloud its recovery, according to industry officials Monday. The uncertainty has also prompted a wave of voluntary resignations among employees. A major supermarket chain, Homeplus is currently undergoing court-led rehabilitation after…
Homeplus, a supermarket chain narrowly averted liquidation and restarted operations in August, is facing challenges in regaining its footing due to weak sales and stalled takeover efforts, according to industry officials. The uncertainty has led to a surge of voluntary resignations among employees. The Korean retailer is currently navigating court-ordered rehabilitation following years of struggles in the hypermarket sector as consumer preferences shift towards online shopping.
In July, the Seoul Bankruptcy Court nearly terminated proceedings when Homeplus failed to raise the required 200 billion won ($150 million) in fresh funding for its restructuring plan. However, the company managed to secure emergency financing from its largest creditor, Meritz Financial Group, at the eleventh hour. Homeplus managed to reopen all 67 of its remaining stores nationwide on August 13, with the aim of kickstarting its recovery.
Sales soared to 10.63 billion won on the first day and maintained an average of 8.7 billion won per day in the following period.
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- Homeplus' recovery falters as sales slump, buyer search stalls koreatimes.co.kr
