Homeplus Preparing to Resume Operations Around August 10... Online Business Restart Also in the Works

Homeplus, which has dramatically secured a path toward resurrection, is expected to resume operations around August 10.

Homeplus held meetings with the mart union and the general union respectively to share the schedule for resuming operations and the future direction of business management.

According to this, management expects the debtor-in-possession (DIP) emergency operating funds from Meritz Financial Group to be funneled in between July 31 and August 3, and aims to resume operations within 7 days from the date the funds are injected.

Based on this, the stores are expected to open their doors on August 7 ahead of the weekend, or August 10 at the latest.

Homeplus had previously suspended operations at 67 of its core stores on the 13th of last month due to the depletion of operating funds.

The resumption of operations is scheduled to take place sequentially depending on the situation of each store, but the variance is not expected to be significant.

Homeplus plans to reorganize its stores into food-specialized outlets ranging from 600 pyeong to 1,000 pyeong in scale.

The company previously stated that, based on strategic decisions, it would sell mainly food, private brand (PB) products, and high-turnover daily necessities, explaining that it will resemble the approach of the U.S. retail company Trader Joe's.

As non-food sectors such as home appliances and clothing are reduced and store sizes are adjusted, manpower operations are also known to be reduced and reallocated reflecting store conditions and personal preferences.

The headquarters purchasing team is currently in discussions with suppliers of fresh and processed foods, and the company explained that it is also concurrently securing logistics centers for goods movement and recruiting delivery drivers.

In line with the timing of the resumption of store operations, the online business sector is also preparing to restart.

Regarding the operation of leased stores, discussions are underway with vendors regarding commission reductions.

Meanwhile, the company explained that the 200 billion won in DIP funds flowing in this time will be used primarily for product supply, and will also be allocated to pay unpaid severance pay and unpaid wages for retirees.

It was reported that about 30 billion won was raised through a 50 percent discount event held just before the suspension of operations at 67 stores, and this was used to pay a portion of June wages (40 percent) and utility bills such as water and electricity.

The headquarters organization is understood to be operated with minimal personnel for the time being.

Whether Homeplus will survive will be decided at a meeting of interested parties to be held on September 4.

Stable sales recovery and the normalization of supplies from partner companies following the resumption of operations are expected to serve as a critical test for the approval of the rehabilitation plan.
※ Please note: This article was translated by AI and may contain errors.