Homeplus faces deepening survival crisis; union calls for government aid

Homeplus, an ailing Korean supermarket chain, finds itself confronting a worsening survival crisis due to mounting financial woes, according to industry experts. The company, currently undergoing court-led corporate rehabilitation, continues to grapple with unpaid supplier bills, delayed wages, and overdue utility payments, exacerbating its precarious situation.

The protracted search for a potential buyer has only increased the uncertainty surrounding Homeplus's future, leading its labor union to call on the government to provide emergency funding to avert further job losses.

In March of last year, Homeplus filed for rehabilitation with the Seoul Bankruptcy Court after receiving a credit rating downgrade. The retailer had previously suspended operations at certain stores but later reopened some of them in mid-August of the current year. Despite these efforts, the company persists in facing challenges such as weak sales and supply disruptions.

According to industry insiders, Homeplus did not fully settle cash payments to some fresh food suppliers on October 30. While the company paid 90% of amounts owed for agricultural and seafood products in cash, the remaining balance was offset against existing supplier deposits. Payments for meat and deli products were entirely covered by these deposits.