The head office of Home Plus in Seoul. The struggling discount chain has halted its operations due to a shortage of working capital, raising strong concerns it could be forced into liquidation. Photo by Home Plus
SEOUL, July 13 (UPI) -- South Korea's discount chain Home Plus said Monday it halted its operations due to a lack of working capital, raising concerns about possible liquidation.
The potential collapse of the Seoul-based retailer is feared to result in tens of thousands of job losses, including among its employees and workers at suppliers. After closing 37 outlets in May, Home Plus had 67 stores remaining across the country.
"Our operating funds have been completely exhausted, leaving us unable to pay suppliers or even cover essential expenses like utility costs necessary to keep our stores running," Home Plus said in a statement.
"As a result, we can no longer operate our stores normally. To ensure security and safety, both our head office and hypermarket stores will be temporarily closed until further notice," it added.
