[비즈한국] After entering a state of stagnation following the termination of its rehabilitation proceedings, Homeplus has ultimately halted operations at all 67 stores nationwide. On the 13th, Homeplus announced a sudden temporary shutdown, citing the depletion of operating funds and the impossibility of maintaining normal business. Because the news of the suspension was only communicated on the morning of the shutdown, it triggered confusion among both employees and customers on-site.
‘Temporary Shutdown’ Announced Only After Employees Arrived for Work
At 12:00 PM on the 13th, a "temporary shutdown" notice was posted at the entrance of a Homeplus store. Employees were seen moving shopping carts to the entrance to block customer access and were busy posting printed notices throughout the store. Even two hours after the 10:00 AM opening time, the work of posting shutdown notices was still ongoing. Because even the employees were only notified of the shutdown after arriving for work as usual that morning, the customer notification and access control measures were carried out belatedly.
One employee said, "We were suddenly notified today of a one-week temporary shutdown. Since a court decision is expected on the 20th, I suppose our future employment status will be determined based on that result."
The temporary shutdown caused confusion among customers who arrived at the store. Customers who were unaware of the shutdown news turned away in dismay after hearing from staff that the store was closed. One customer said, "I can't believe it's suddenly closed. What is happening?" and added, "I never thought Homeplus would end up closing its doors like this. It’s very disappointing."
Customers were also seen visiting the store to request refunds for products after hearing the news of the shutdown. Customers asked until when they could return their purchases, and a staff member explained, "Refunds are possible only until today. From tomorrow, there will be no staff working in the store," adding, "I don't know what will happen after that."
At the Homeplus Culture Center, members who received the sudden news of the shutdown flocked to confirm the cancellation of courses and the processing of tuition refunds. The customer service phones rang incessantly, but the staff were too occupied with handling in-person inquiries to even answer the calls. One member said, "I rushed over after receiving a text message to get a refund for my tuition because of the temporary shutdown," adding, "There was no prior notice at all. I never imagined it would close like this; I am very flustered."
Homeplus decided on the temporary shutdown of all 67 stores nationwide on this day and notified the branches. Homeplus stated, "With all operating funds exhausted, we are unable to pay for goods or even cover basic operating expenses like utility bills to maintain the stores," adding, "As it is no longer possible to operate the stores normally, both the head office and all hypermarket stores will enter a temporary shutdown starting from the 13th until there is a change in the situation, in order to maintain security and safety."
The company explained that employees were also only informed of the business suspension after showing up for work as usual that morning. Homeplus posted the shutdown policy on the company-wide bulletin board at 9:51 AM.
According to BizHankook's coverage, Homeplus submitted an "Application for Permission for Temporary Cessation of Business" to the court on the same day. Given that the employee announcement, the start of the shutdown, and the court application all occurred on the same day, it appears the decision to halt operations was executed quite urgently.
Total Shutdown After Half-Price Sales... Following Bankruptcy Procedures?
Previously, the Seoul Rehabilitation Court decided to terminate the pre-authorization rehabilitation proceedings on the 3rd, judging that the possibility of Homeplus executing its submitted revised rehabilitation plan was low. This was because Homeplus failed to present a concrete plan to secure the 200 billion won in operating funds necessary for normalizing operations.
The court left the door open for the possibility of continuing the rehabilitation process if Homeplus secured funding and filed an immediate appeal within the 14-day appeal period. However, the industry viewed it as unlikely that Homeplus could secure 200 billion won in operating funds in the short term. This is because, while the largest shareholder, MBK Partners, requested financial support from the largest creditor, Meritz Financial Group, both sides failed to narrow their differences regarding the method of support and the scope of responsibility.
Following the court's decision to terminate the rehabilitation process, the situation at Homeplus worsened rapidly. Contracts with subcontractors for parking, cleaning, and other services were terminated, and the operation of staff cafeterias was also halted. Starting on the 10th, the company began a stock liquidation sale, offering 50% discounts on all items in the stores. This is interpreted as a last-ditch measure to monetize remaining inventory with operating funds completely dried up.
The labor union stated, "MBK and the management claimed that the 50% store-wide discount event was 'a measure to continue business activities' and not preparation for liquidation," adding, "But as soon as the weekend passed, they decided to temporarily shut down the stores and gave a surprise notification without a single word of prior warning."
Market observers believe it is highly likely that Homeplus will enter bankruptcy proceedings within this week. This is because normal store operations have effectively ceased, and the possibility of securing operating funds to continue rehabilitation is slim. As the threat of bankruptcy becomes a reality, the labor union and store tenants are appealing to the government to prepare emergency measures.
The Homeplus Tenants' Association announced that it would hold a nationwide rally of store owners on the 15th, demanding a responsible response from the government and relevant agencies. The Mart Workers' Union Homeplus Branch is also hosting a "National Rally to Save Homeplus" in front of the MBK headquarters and the Blue House on the same day.
The union stated, "The lives of hundreds of thousands of citizens who depend on Homeplus for their livelihoods—not just mart workers, but also tenants and subcontracted partners—are being pushed to the edge," adding, "The government must come up with strong measures to normalize Homeplus."