Retailer plans to reopen 67 stores, streamline operations, prepare for court-supervised sale A Homeplus store in Seoul (Im Se-jun/The Korea Herald) Homeplus said Wednesday it will accelerate efforts to normalize operations and complete its restructuring plan after the Seoul Bankruptcy Court decided to extend the retailer’s court-led rehabilitation process through Sept. 4 on the previous day.According to Homeplus, the company will reopen all 67 key stores now under temporary suspension as soon as it receives 200 billion won ($135 million) in debtor-in-possession, or DIP, financing. The retailer added that its online business will also gradually resume, beginning with 16 stores in the Seoul metropolitan area that are capable of immediately supporting delivery operations.The company said the DIP financing will first be used to cover essential operating expenses, including payments to merchandise suppliers, overdue rent and utility bills, to ensure stores can resume operations without disruption.Homeplus also pledged to minimize the financial impact on employees and business partners by paying delayed wages and settling outstanding payments owed to small-business tenants and vendors.Alongside efforts to restore operations, the retailer said it will complete its ongoing restructuring within the extended rehabilitation period and move forward with preparations for a sale of the company.Homeplus plans to prioritize securing high-turnover daily necessities and essential consumer goods as well as food and private-label products, in a strategy it says is aimed at improving cash flow, stabilizing operations and moving away from the traditional hypermarket format. The retailer will focus on operations on single-floor spaces instead of multistory layouts.The company said the strategy resembles the business model of US grocery chain Trader Joe’s, which generates most of its sales through private-label products sold in compact stores with a curated assortment of groceries and household essentials.In addition, Homeplus has set its eyes on permanently closing 37 underperforming stores that are now temporarily shut. The retailer intends to reduce operating costs by maintaining only minimum staffing levels at its headquarters and stores, while keeping remaining employees on temporary leave for the time being.Last week, Meritz Financial Group agreed to extend 200 billion won in emergency financing to Homeplus as a DIP loan with MBK Partners Chairman Michael ByungJu Kim offering a personal joint guarantee for the funding. Homeplus on Monday filed an appeal with the court to reconsider the latter’s earlier decision to terminate the corporate rehabilitation proceedings.