Homeplus Requests Bridge Loan from Meritz Amid Financial Struggles

Homeplus has once again requested a bridge loan from Meritz Financial Group to secure emergency operating funds. This request comes as the company prepares for the inflow of funds from the sale of Homeplus Express at the end of next month, which is expected to cover about a month’s worth of operational expenses.

On May 21, Homeplus stated, "The proceeds from the sale of Homeplus Express, which is part of our supermarket division, are expected to arrive by the end of next month. We have requested Meritz Financial Group to provide a bridge loan to cover our operational needs for the next month, using these proceeds as collateral."

Included in this request is a performance guarantee from Kim Kwang-il, vice chairman of MBK Partners, who is overseeing Homeplus. The company noted, "Vice Chairman Kim has agreed to provide a performance guarantee and has also proposed additional collateral options."

Homeplus emphasized that it is currently facing a severe financial crisis. The company remarked, "Today is the payroll date for May, but we have only been able to pay part of April's wages, and we are experiencing significant difficulties in product supply. The bridge loan is essential for the company to navigate its current challenges."

Furthermore, the company added, "This funding will also help improve the recovery rate for creditors through the normalization of the company. We have proposed all possible options available to us, and we hope for a positive review and immediate action from Meritz."

Meanwhile, Homeplus has suspended operations at 37 of its 104 stores nationwide until July 3.