Homeplus Suddenly Suspends Operations; Bankruptcy Looming?

[Anchor]

Homeplus suddenly suspended its operations yesterday (July 13). The company stated it no longer has the funds to cover operating costs, and there are growing concerns that it may enter bankruptcy proceedings if a solution is not found within the next few days.

Reporter Hong Yeongjae has the story.

[Reporter]

Notices announcing a temporary closure have been posted at the entrances of Homeplus stores.

Shopping carts that should be filled with groceries are now being used as barricades in front of checkout counters, and the shelves inside the darkened stores are empty.

[(Did you hear that they would be closed today?) We have no idea. We don't know anything.]

The temporary suspension affects 67 Homeplus hypermarkets nationwide as well as the company's headquarters.

Homeplus stated that it decided to suspend operations because it could no longer afford the costs required to pay for merchandise and maintain the stores.

Customers expressed shock at the news that the stores, which were bustling with crowds during a massive clearance sale just last weekend, have suddenly ceased operations.

[Local Resident: It is absurd that this is suddenly gone. Are elderly people over 80 or 90 supposed to travel two bus stops away just to go grocery shopping? Things like this shouldn't just disappear.]

Tenants operating within the stores were also not notified of the closure in advance.

They are worried not only about the sales proceeds that have been unpaid for months but also about how they will continue their business in the future.

[Homeplus Tenant: They never said anything about a closure. I found out when I arrived this morning through an announcement. We haven't even received our sales payments, and it only goes up to April...]

The anxiety is even greater for the approximately 12,000 Homeplus employees who are now at risk of losing their jobs.

[Kang Woo-cheol, Chairman of the Korean Mart Industry Union under the KCTU: The workplaces of these workers have been shut down overnight, and the livelihoods of 100,000 people, including tenants and partner company workers, have been pushed to the edge of a cliff.]

The positions of the major shareholder, MBK Partners, and the largest creditor, Meritz Group, remain at a stalemate regarding how to secure the 200 billion won in necessary operating funds.

If a solution is not found by July 20, Homeplus will effectively enter the liquidation process. The labor union plans to meet with the vice chairman of MBK to demand a concrete plan for securing the funds.

(Video reporting: Kim Se-kyung, Video editing: Park Chun-bae, VJ: Jung Han-wook)

※