Debt-laden retailer seeks fresh funding, strategic buyer ahead of restructuring deadline A Homeplus store in Seoul (Yoon Chang-bin/The Korea Herald) Homeplus has put its remaining operations up for sale after agreeing to dispose of its supermarket arm, industry sources said Tuesday, courting domestic and foreign buyers as the debt-laden retailer seeks funding ahead of a court-imposed restructuring deadline.According to the sources, Homeplus's sales adviser, PwC Korea, has sent teaser materials to more than 10 domestic and overseas strategic investors as part of a sale process for the retailer's hypermarket and online businesses.Potential buyers include South Korean retail groups Lotte, Shinsegae and CJ, as well as Chinese e-commerce companies Alibaba and Temu.The push follows Homeplus's May agreement to sell its supermarket unit, Homeplus Express, to Harim Group's NS Shopping for 120.6 billion won ($80 million) in cash, with the buyer also assuming part of the division's liabilities.The transaction would ease the retailer's liquidity strain, though additional funding would still be needed to stabilize operations, the company noted."The sale of Homeplus Express is expected to improve liquidity, but because the proceeds will not be received for another two months, we need additional funding both to maintain operations until the cash inflow arrives and to implement the rehabilitation plan," the company said in a statement.An escalating liquidity crisis compounds the challenge, despite MBK Partners' provision of 100 billion won in debtor-in-possession financing in March.The company is currently seeking a 100 billion won bridge loan from its largest creditor, Meritz Financial Group, to sustain operations until cash from the Express sale arrives. The talks have deadlocked, however, with Meritz demanding a personal guarantee from MBK Chairman Michael Kim, immediate repayment once the proceeds land and a 6 percent interest rate.Homeplus must win court approval for its rehabilitation plan by July 3 or face the prospect of liquidation.Even if the court extends the deadline to September, industry observers warn that the risk of liquidation would rise sharply if the company cannot keep its remaining locations open, with dozens of stores already idled.Homeplus temporarily suspended operations at 37 low-performing locations from May through July, out of its 104 hypermarkets total. It has delayed wage payments to employees and struggled to keep shelves stocked as supplier payments have fallen behind.Some believe the better path is not a package sale of the remaining hypermarket and online operations, but carving out valuable real estate assets from operating units to lower the cost of acquiring the core retail business."Finding a buyer for Homeplus's entire store network will be challenging, so selling prime locations separately could be one way to improve the chances of a deal," one industry official said.