Homeplus, a major discount retailer, is set to enter bankruptcy after failing to find a buyer.
The Seoul Bankruptcy Court's Fourth Division, led by Judge Jeong Jun-young, decided on July 3 to terminate the corporate restructuring process for Homeplus.
This decision is attributed to the court's assessment that the feasibility of the revised restructuring plan submitted by Homeplus was low.
On June 30, Homeplus submitted a modified plan that proposed restructuring 126 stores into 67 core locations, claiming it could generate an operating profit of around 80 billion won if supply and sales normalized. However, the plan lacked a concrete strategy to secure the minimum required funding of 200 billion won.
Previously, the court had extended the deadline for approving the restructuring plan from March 4 to May 4, and then postponed it again until July 3.
The deadline for approving the restructuring plan is one year from the start of the process, which can be extended by up to six months for unavoidable reasons. Given that Homeplus's restructuring process began on March 4 of last year, there was potential for another extension until September.
However, the court deemed that further extensions would be ineffective and chose to halt the restructuring process.
With this decision, the comprehensive injunction that had prevented creditors from enforcing claims, seizing assets, or auctioning properties has also been lifted.
As a result of the court's termination of the restructuring process, partners and suppliers of Homeplus, as well as small businesses that operate within its stores, are expected to face significant repercussions.
Earlier, on July 1, Homeplus's partners submitted a petition to the court urging it to "save Homeplus," expressing concerns that if the company goes bankrupt, numerous small suppliers could lose their sales channels and collapse as well.
* This article has been translated by AI.
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