Homeplus, which recently received court approval for its rehabilitation plan, has officially begun the process of asset sales and mergers and acquisitions (M&A). Following the sale of its corporate supermarket division, Homeplus Express, the company is now seeking new owners for its remaining hypermarkets, online business, and headquarters as part of its recovery efforts.
According to the retail and financial investment sectors on September 17, Homeplus has initiated M&A procedures for 67 hypermarkets, including its headquarters and online division, in accordance with the court's rehabilitation plan. This follows the approval of the rehabilitation plan by the Seoul Bankruptcy Court on September 2, marking a significant step forward.
The sale process will proceed on two tracks based on the nature of the business. The core business, which includes the 67 hypermarkets, online division, and headquarters, will be sold as a unified entity through a business transfer, while the real estate of 19 owned properties among the closed stores will be sold individually to secure liquidity. Samil Accounting Corporation, the lead advisor for the sale, is expected to send investment memorandums to potential buyers this week.
Previously, Homeplus sold Homeplus Express to NS Home Shopping, a subsidiary of Harim Group. With the remaining divisions, including the hypermarkets, online business, and headquarters now on the market, the M&A process is gaining momentum.
The rehabilitation plan submitted by Homeplus consists of three main components: selling the 19 owned properties among the closed stores to improve financial structure, normalizing operations and reducing fixed costs to enhance profitability, and pursuing M&A for the remaining business divisions.
Homeplus is also working on normalizing operations. The company is focusing all available funds on securing products for the 67 core stores, which reopened on August 7. Homeplus has reported that it has reduced fixed costs, including rent and labor, by approximately 500 billion won through the rehabilitation process.
If the M&A is successful, Homeplus will need to revise its rehabilitation plan. The company plans to submit a new plan reflecting the sale proceeds to the court after the sale contracts are signed. Depending on the sale results, the timeline for repaying creditors may be accelerated compared to the original plan.
* This article has been translated by AI.
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