[비즈한국] Homeplus has decided to permanently close 37 of its suspended stores across the country. This decision will reduce the total number of stores from 104 to 67, placing approximately 3,500 employees at the affected locations at risk of losing their jobs. The labor union is pushing back, claiming that large-scale layoffs are becoming a reality.
Promised Suspension Until July… Ends in Permanent Closure
On the 4th, Homeplus notified the Homeplus branch of the Mart Industry Workers' Union and its general union that it had decided to close the stores currently under temporary suspension. Less than a month after initially suspending operations at 37 locations due to worsening financial conditions, the company has pivoted toward permanent closure. This decision reduces the total store count from 104 to 67.
Previously, on May 10th, Homeplus announced it would suspend operations at 37 locations until July 3rd. The strategy was to reduce the number of operating stores and concentrate inventory and management resources on the remaining locations to stabilize sales and normalize operations amid supply chain issues caused by worsening finances.
However, the situation did not improve as expected. Persistent supply shortages at the remaining stores likely led the company to determine that resuming operations at the suspended locations would be difficult, ultimately resulting in the closure decision.
Industry insiders interpret this move as a restructuring step in preparation for a pre-packaged M&A. Following the recent sale of its Express division, Homeplus is pursuing a pre-packaged M&A for its remaining business units, including large hypermarkets and its online mall. As the success of the sale is seen as critical for management normalization, this action is viewed as an effort to lower costs by clearing out suspended stores and highlighting the profitability of the remaining outlets.
3,500 Employees Affected; Homeplus Initiates Voluntary Retirement
With large-scale closures becoming a reality, employment issues have emerged as a core point of contention. According to the union, the number of direct Homeplus employees, which stood at nearly 20,000 before the application for corporate rehabilitation, has fallen to around 15,000. Notably, about 3,000 employees left the company in just the four months between January and April of this year, as the management situation deteriorated. With this latest closure decision, another 3,500 staff members are now facing the risk of unemployment, further deepening employment anxiety.
Homeplus plans to conduct voluntary retirement for employees at the closed stores. The voluntary retirement package is open to employees at the manager level and above, offering three months' worth of wages as a severance bonus. Staff members below the manager level are eligible for employment stability benefits according to the agreement previously signed between management and the labor union.
However, given the current instability of Homeplus's financial status, there are concerns about whether these voluntary retirement and employment stability benefits will be paid as planned. Previously, when announcing the suspension of 37 stores, Homeplus promised to pay employees 70% of their average wages as suspension allowances and pledged to reassign those who wished to keep working. However, the very next day, the company reversed its stance, stating, "It is currently difficult to reassign staff from the suspended stores to the 67 remaining ones," and that they "plan to proceed with reassignments only after operations at the 67 stores normalize to some extent."
The union is protesting, claiming the closure decision was a unilateral notification from management. The Homeplus branch of the Mart Industry Workers' Union stated, "We can understand the closure of some stores for the sake of normalization. However, indiscriminate closures like this only serve as a hurdle to that goal. Stores that should be judged strategically for their competitiveness must be saved." They further criticized the company, saying, "MBK, the majority shareholder, should stop making excuses about operating fund loans and do everything in its power, such as providing payment guarantees for goods."