[비즈한국] Homeplus Express, which was acquired by NS Shopping101360, a subsidiary of Harim136480 Group, has entered into a voluntary resignation process. While expectations for job security had risen among employees when NS Shopping acquired the Homeplus Express business unit, anxiety is spreading again as voluntary resignations are being implemented immediately.
"Is this the start of restructuring?" Murmurs of unrest
According to industry sources, Homeplus notified its Homeplus Express employees on the 11th of its voluntary resignation plan. Severance pay will be provided to those who opt for voluntary resignation based on their years of service. It is reported that employees with 3 years of service or less will receive 3 months of base salary, those with 4 to 9 years will receive 8 months, those with 10 to 19 years will receive 10 months, and those with 20 or more years of service will receive 12 months of base salary.
This voluntary resignation program draws attention as it was launched immediately after the signing of the acquisition agreement for Homeplus Express by NS Shopping. Previously, NS Shopping had entered into a Sales and Purchase Agreement (SPA) to acquire the Homeplus Express business unit. The acquisition price is reported to be around 120 billion won.
Initially, there was considerable internal anticipation regarding the incorporation into Harim Group. There were projections that the business stability and competitiveness of Homeplus Express could be strengthened by combining it with NS Shopping’s retail capabilities. It is reported that among employees who had felt anxious about the company’s survival following rehabilitation proceedings, there was an atmosphere of viewing the acquisition itself positively.
However, as the voluntary resignation process began immediately, the atmosphere on the ground has changed significantly. Anxiety is growing among employees that this voluntary resignation might be the start of a broader restructuring.
Some in the industry interpret this voluntary resignation as a step that was somewhat foreseen during the acquisition negotiation process. They suggest that, considering labor cost burdens and organizational efficiency issues post-acquisition, a plan for a certain level of workforce reorganization may have been reviewed in advance.
A labor union official pointed out, "There is speculation that the terms were settled in a way that Homeplus would bear the costs of voluntary resignation during the acquisition agreement process. Many Express employees work short hours—4 to 7 hours a day—so their base salary is not very high. Even with 10 or 12 months of severance pay, the actual amount received is often not very large. In the end, isn't this an attempt to reduce the workforce at a low cost?"
On the other hand, Homeplus maintains that this voluntary resignation is a decision to ensure employee choice rather than restructuring. A Homeplus official explained, "As the company has been sold, it is a way to provide existing employees with options. We made it so that employees can decide for themselves whether they want to continue working under the new operator or opt for voluntary resignation."
37 Homeplus stores temporarily closed… about 3,000 employees on leave
Homeplus began temporary closures of 37 stores nationwide on the 10th. The closures include the Junggye and Jamsil stores in Seoul, as well as the Yeonsu, Songdo, KINTEX, Gyeonggi Hanam, and Centum City stores. The company plans to temporarily suspend operations at these stores until July 3rd. Consequently, only 67 out of the total 104 Homeplus stores will operate normally.
Instead of reducing the number of operating stores, Homeplus plans to focus its product supply and operational capabilities on the remaining stores to drive sales recovery and normalization. A Homeplus official stated, "This was an inevitable decision as major suppliers tightened delivery terms following the start of rehabilitation proceedings, making it difficult to supply sufficient products to all stores. We are experiencing customer attrition due to product shortages at many stores, and sales have decreased by more than 50% compared to the previous year. We plan to recover operations by concentrating available products in 67 stores."
Concerns are being raised in the industry that Homeplus's 'selection and concentration' strategy will be difficult to implement effectively. Analysis suggests that simply funneling volume to select stores will have limited success in recovering sales when product supply is fundamentally insufficient.
An industry insider pointed out, "Even if products are concentrated in the remaining stores, it is highly likely that it will only lead to an increase in existing product quantities. The competitiveness of large discount stores lies in their diverse product assortment, but currently, the supply itself is not smooth. Since items like alcohol or some daily necessities cannot be supplied, there are limits to driving customer traffic."
Employment anxiety is growing among employees on the ground. A labor union official pointed out, "The company announced that relocation of employees from closed stores was possible, but the HR department was actually unaware of the details. Without a concrete manual regarding relocation, all employees have been placed on leave. There are over 3,000 employees at those 37 stores. Isn't it uncertain whether they will be able to return to work in two months? The atmosphere is that this is being accepted as a de facto restructuring step."
Homeplus is reportedly preparing a revised rehabilitation plan that reflects the requirements of creditors. As the revised plan is expected to include measures for store operational efficiency and the suspension of operations at certain locations, concerns regarding the potential for additional store closures are emerging inside and outside the industry. Regarding this, Homeplus stated, "There are no confirmed or discussed matters concerning additional closures at this time."