Homeplus faces deepening survival crisis; union calls for government aid

Homeplus, currently undergoing court-led corporate rehabilitation, is experiencing a worsening survival crisis due to significant financial woes, according to industry officials. The company's prolonged search for a potential buyer has heightened uncertainty about its future, leading its labor union to call for government intervention to avert additional job cuts.

Homeplus filed for rehabilitation with the Seoul Bankruptcy Court in March of the previous year following a downgrade in its credit rating. Following this, the major supermarket chain briefly halted operations in certain stores before partially reopening them in mid-August of the same year. However, the retailer continues to grapple with low sales and disruptions in its supply chain.

Industry insiders report that Homeplus did not fully pay cash to some fresh food suppliers on October 30. While the retailer paid 90 percent of amounts owed to agricultural and seafood suppliers in cash, the remaining balance was offset using existing supplier deposits. Payments for meat and deli products were fully covered by those deposits.