Homeplus Seeks 200 Billion Won Loan After Court Ends Rehabilitation Process

Homeplus, which is facing bankruptcy after failing to find a buyer, has requested a loan of 200 billion won from Meritz Financial Group for operating funds.

In a statement on July 3, Homeplus said, "Since the rehabilitation process began in March of last year, we have taken various measures, including negotiating rent reductions, suspending operations at some stores, and selling the Homeplus Express division. However, we have encountered disruptions in the supply of goods for sale during the rehabilitation process."

The company added, "Without the injection of operating funds, it is difficult to alleviate concerns about the feasibility of our recovery plan, which ultimately led the court not to extend the deadline for the approval of the recovery plan."

Homeplus noted that if it secures the 200 billion won in operating funds within two weeks and files an immediate appeal, it could resume the rehabilitation process. The company stated, "We urge our largest creditor, Meritz Financial Group, to provide a loan of 200 billion won in operating funds."

Homeplus emphasized, "We will actively cooperate with the upcoming legal procedures to minimize the impact on creditors, employees, and other stakeholders." It also expressed sincere apologies to customers, employees, vendors, and partners for the challenges faced during this process.

Earlier, the Seoul Rehabilitation Court decided to terminate Homeplus's rehabilitation process on the same day, citing low feasibility of the revised recovery plan submitted by the company on June 30.

The court indicated that at least 200 billion won in operating funds would be necessary to implement the recovery plan, but noted that no funding had been secured to date.