Distressed discount retailer Homeplus to shutter 37 stores

A person passes by a Homeplus branch in Songpa District, southern Seoul, on June 4. [NEWS1]

Financially troubled discount chain Homeplus is shuttering more than 30 percent of its stores across the country, a decision likely to leave some 3,500 employees jobless, industry sources said Thursday.

The company delivered the decision in a notice to its labor union earlier in the day, saying it will permanently close operations of 37 stores among 104 operated by the company.

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Operations at the 37 stores have been suspended since last month, after the retailer sold its supermarket business, Homeplus Express, to NS Shopping, a local home shopping channel operator.