[Anchor]

Homeplus, which once ranked as the second-largest hypermarket chain in the industry, has been pushed to the brink of bankruptcy. The court has decided to terminate the company's rehabilitation process, determining that the possibility of recovery is low. The major shareholder, MBK Partners, and the largest creditor, Meritz Financial Group, are merely shifting responsibility onto each other.

Reporter Kim Hye-min has the story.

[Reporter]

The Seoul Bankruptcy Court has terminated the rehabilitation process for Homeplus.

The decisive factor was the failure to secure 200 billion won in operating funds.

The court stated that while MBK Partners, the private equity firm and major shareholder of Homeplus, claimed that at least 200 billion won in external funding was necessary for rehabilitation, it only stated that it was making efforts without submitting any concrete or realistic data.

Homeplus saw its sales plummet as online transactions grew during the COVID-19 pandemic. After credit rating agencies downgraded its credit rating, the company filed for the commencement of rehabilitation proceedings in March of last year.

During the rehabilitation process, an assessment even suggested that liquidating Homeplus would have an economic value over 1 trillion won higher than maintaining it.

Although MBK Partners sold the Homeplus Express business division and reduced the number of stores, the company has been unable to pay employee salaries or settle payments to suppliers since last month.

With bankruptcy imminent following the court's decision, MBK Partners and the largest creditor, Meritz Financial Group, are only blaming each other.

Meritz maintains that it deposited a 100 billion won loan on the condition of a joint guarantee from MBK and Chairman Kim Byung-ju, arguing that MBK must secure the remaining 100 billion won.

In contrast, MBK countered that while it is willing to provide a joint guarantee for 100 billion won, it does not have the capacity to secure or guarantee the remaining 100 billion won.

[Interview: Kang Woo-chul / Chairman of the Mart Industry Workers' Union under the Korean Confederation of Trade Unions]: If they continue to run on parallel lines, it will ultimately lead to liquidation. If that happens, 100,000 workers and small business owners will be left on the streets. Shouldn't the government intervene in this?

Regarding the court's decision today (July 3), Homeplus can file an immediate appeal within 14 days.

If Homeplus succeeds in raising the 200 billion won during this period, the resumption of the rehabilitation process is possible.

If the company fails to secure the funds and even gives up on the appeal, it may enter bankruptcy proceedings.

(Photo: Yonhap News)

Reported by Bae Moon-san and Yang Hyun-chul | Video edited by Choi Hye-young | Graphics by Jang Seong-beom, Kim Min-young, and Kang Yoon-jung