SEOUL – Homeplus, currently undergoing corporate rehabilitation, has submitted a "Structural Innovation Rehabilitation Plan" to the Seoul Bankruptcy Court on Monday. The move leaves the retail giant's fate hanging between a successful turnaround and potential liquidation.

According to industry sources on December 29, the plan focuses on the split-off sale of its corporate supermarket (SSM) wing, Homeplus Express, the closure of underperforming stores, and workforce streamlining.

Key Measures for Survival
The rehabilitation plan marks a shift in strategy after the company failed to find a buyer for the entire entity through a public auction earlier this year. The key pillars of the proposal include:

Asset Liquidation: Homeplus plans to sell Homeplus Express, which operates 295 locations. While the market value was previously estimated between 800 billion and 1 trillion KRW, high interest rates and dwindling consumer sentiment make the sale's success uncertain.
Store Rationalization: Following the closure of five stores (including Gayang and Ilsan) on December 28, the company intends to shut down an additional 41 underperforming locations over the next six years to secure operating capital.
Workforce Optimization: The plan includes voluntary retirement packages for long-term employees and the reassignment of staff from closed branches to nearby locations.
Liquidity Injection: To address immediate cash flow issues—such as delayed payments to suppliers and utility bills—Homeplus seeks to raise up to 300 billion KRW through debtor-in-possession (DIP) financing.

Skepticism and Labor Resistance
Despite these drastic measures, industry experts remain cautious due to the worsening economic climate characterized by high inflation and interest rates.

The Homeplus labor union has voiced strong opposition. A union representative stated, "This plan essentially pieces apart the company without any real capital injection from the majority shareholder, MBK Partners. It is questionable whether a downsized Homeplus can survive in the long run."

The union is scheduled to hold a press conference at the National Assembly on the 30th to call for government intervention. The court will now proceed to seek consent from the creditors to determine whether to approve the rehabilitation plan, pushing the final decision into early next year.

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