Major discount store chain Homeplus is now set to face bankruptcy proceedings as it has failed to find a buyer, leaving it with no clear path forward.

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

The decision was made after the court determined that the revised rehabilitation plan submitted by Homeplus on June 30 had a low probability of success.

The plan included restructuring the business by focusing on 67 core stores to improve profitability, but it reportedly lacked a concrete strategy to secure the 200 billion won in funding required to implement the plan.

Previously, the court had extended the deadline, which was originally March 4 of this year, to May 4, and then postponed it once more to today.

While the deadline for approving a rehabilitation plan is typically one year from the commencement of the process, it can be extended by up to six months if there are unavoidable circumstances.

Considering that the Homeplus rehabilitation process began on March 4 of last year, there was technically room to extend the deadline again until September.

However, it is reported that the court decided to halt the rehabilitation process, concluding that further extensions would be ineffective.

(Photo: Yonhap News)