Homeplus still faces additional funding needs as it pushes ahead with court-led rehabilitation and a revised turnaround plan. The retailer plans to raise 1.42 trillion won by selling 23 stores by 2028, but it says that will not cover all obligations. The Seoul Bankruptcy Court has set a creditors’ meeting for Sept. 2 to review the plan before a Sept. 4 approval deadline. Homeplus reported stronger reopening sales, with 43.7 billion won in the first five days and daily foot traffic near 240,000.
A Homeplus employee arranges products at the retailer’s store in Gangseo District, Seoul, Aug. 13, as the retailer reopened 67 stores nationwide. Korea Times photo by Choi Won-suk
Homeplus still faces additional financing needs to service its massive debt obligations and sustain its long-term rehabilitation after resuming normal operations last week with a 200 billion won ($143 million) emergency credit line, industry officials said Thursday.
According to the company’s second revised rehabilitation plan, the retailer, which was pushed to the brink of bankruptcy, plans to raise a total of 1.42 trillion won by selling 23 company-owned stores by 2028. However, even liquidating a large portion of its store portfolio will not be enough to cover its funding needs throughout the rehabilitation period.
