Court Discontinues Homeplus Rehabilitation Process, Bankruptcy Likely After Failure to Find Buyer

Homeplus, a major supermarket chain, is set to head toward bankruptcy as it has failed to find a buyer, leaving the company with no clear path forward.

The 4th Bankruptcy Division of the Seoul Rehabilitation Court decided today, July 3, to discontinue the corporate rehabilitation process, or court receivership, for Homeplus.

The decision came after the court determined that the revised rehabilitation plan submitted by Homeplus on June 30 had a low probability of successful implementation.

The plan included restructuring the business by focusing on 67 core store locations to improve profitability. However, it was reported that the company failed to provide a concrete plan to secure the 200 billion won in funding required as the minimum capital to execute this strategy.

With today's decision, the comprehensive injunction that had been protecting the company from compulsory execution, provisional seizure, and auctions by creditors has also been lifted.
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