Homeplus' recovery falters as sales slump, buyer search stalls

Homeplus, a struggling major supermarket chain, faces challenges in its recovery due to weak sales and stalled efforts to acquire another company, according to industry experts. The uncertainty has led to a number of employees voluntarily leaving their positions. The retailer, once narrowly avoiding liquidation and resuming operations in August, is currently undergoing court-led rehabilitation after years of decline in the hypermarket sector and as consumers increasingly turn to online shopping.

In July, the Seoul Bankruptcy Court briefly halted proceedings when Homeplus failed to secure 200 billion won in new funding required for its restructuring plan. However, the retailer managed to reverse that outcome by securing emergency financing from Meritz Financial Group, its largest creditor, just in time. The company reopened all 67 of its remaining stores nationwide on August 13 in a bid to reinvigorate its recovery.

Despite the reopening, sales only reached 10.63 billion won on the first day and averaged 8.7 billion won daily over the following period.