Homeplus Temporarily Halts Operations, Pays 40% of June Salaries

Homeplus has confirmed that it is paying employees 40% of their June salaries in phases as it suspends store operations due to depleted operating funds. The resolution of unpaid wages and securing operational funds is expected to be crucial for the company's future stabilization, especially with the deadline for an immediate appeal against the decision to terminate its rehabilitation process approaching.

According to the retail industry on July 13, Homeplus began depositing 40% of June salaries to employees around 1 p.m. The company had completed payments for May salaries by early this month and stated that the only remaining unpaid wages are for June. As of July 8, Homeplus reported a total of 33.2 billion won in unpaid June wages. The company is committed to ensuring that employee salaries are not delayed for an extended period.

However, there are delays in severance payments separate from salaries. Homeplus recently notified former employees that due to a lack of funds, severance payments for those who left in mid-June may be delayed.

Starting today, Homeplus has also begun to gradually suspend operations at its large retail stores. This decision is attributed to the depletion of operating funds, making it difficult to cover not only product costs but also essential operating expenses such as electricity and water bills. However, tenants in shopping malls may continue to operate if they choose to do so.

Homeplus explained that this was an unavoidable measure to ensure the safety of customers and employees amid growing concerns over safety due to the departure of facility management personnel.

Meanwhile, Homeplus plans to focus on securing funding by the appeal deadline of July 20 regarding the termination of its rehabilitation process. The decision to resume store operations will depend on the court's final judgment.

Previously, the Seoul Bankruptcy Court decided to terminate Homeplus's rehabilitation process, citing the lack of a viable plan to secure the minimum operating funds of 200 billion won necessary for executing its rehabilitation plan. However, if a feasible plan for securing operating funds is presented within the appeal deadline, the court may reconsider whether to maintain the rehabilitation process.