The sale of Homeplus is becoming increasingly complex. While the possibility of selling parts of the business has been opened to reduce the burden of a full sale, the company's structure, which utilizes offline stores as online delivery hubs, makes it challenging to select only profitable locations for sale.
According to industry sources on September 23, Homeplus's sale advisor, Samil PwC, recently sent teaser letters to about 50 potential buyers, including domestic and international strategic and financial investors. The primary sale targets include 67 operating hypermarkets and the headquarters and online business segments. However, it is reported that the option to acquire only certain stores or business segments is also available, depending on the buyer's financial capacity and business strategy.
Homeplus's online business is closely linked to its offline store network. The company has developed its online grocery business by picking products from existing stores for delivery, rather than relying on large, dedicated online logistics centers. Among the 67 stores for sale, 54 have previously reported profits. Many of the remaining stores are included as key locations due to considerations for maintaining online logistics and regional sales networks.
The scale of the online business is significant. Before entering rehabilitation, Homeplus's online sales for the 2024 fiscal year exceeded 1.5 trillion won, accounting for about 20% of total sales, with food items making up 86% of online sales. The offline stores have served as both sales points and logistics hubs for online shopping.
A variable in the Homeplus sale is that the normalization of operations is still ongoing. Last month, Homeplus resumed operations at its 67 stores, but product supply and sales recovery have not met expectations. During a labor-management meeting on September 15, Homeplus reportedly stated that sales since the resumption have only reached about 40% of its internal targets.
Cash flow pressures continue to mount. The Homeplus branch of the supermarket industry labor union issued a statement the previous day, noting that delays in salary and holiday bonuses since July have increased financial hardships for employees. The union estimates that the cumulative unpaid amount per employee has reached approximately 10 million won. The company has decided to pay the overdue July salaries in two installments on September 23 and 30.
These circumstances may influence how buyers select stores. The ability of the 54 previously profitable stores to recover cash generation after normalizing product supply, and the additional working capital needed if stores serving as online logistics hubs are also operated, could significantly impact the actual enterprise value.
On September 2, Homeplus received approval for its rehabilitation plan from the Seoul Rehabilitation Court, with 75.9% of rehabilitation creditors voting in favor. If repayments under the rehabilitation plan proceed normally, the process can be concluded, but failure to implement the plan could reopen the possibility of bankruptcy.
An industry insider stated, "If we only look at store profitability and select only the profitable locations, it could create gaps in the online delivery network, making it difficult for the sellers to make a straightforward decision. The key will be whether the acquisition candidates have the funds and plans for normalization to take on the online logistics hubs as well."
* This article has been translated by AI.
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