“No Forced Restructuring” vs. “Liquidation Under the Pretense of Rehabilitation”
(Seoul = Yonhap News) Reporter Jeon Sung-hoon – Homeplus activated its first labor-management committee since beginning the corporate rehabilitation process (court receivership), but the meetings ended without significant results due to disagreements on the nature of the rehabilitation.
According to Homeplus and labor unions on the 22nd, Kim Kwang-il, Vice Chairman of MBK and Co-CEO of Homeplus, and the management team met with the Homeplus branch of the Service Federation of the Korean Confederation of Trade Unions to explain future plans.
This was the first face-to-face meeting between labor and management since Homeplus entered rehabilitation procedures on March 4.
Vice Chairman Kim explained that the company is prioritizing job security and that there would be no forced restructuring as part of the rehabilitation process.
He emphasized that for rehabilitation to be successful, it’s essential to improve profitability and establish a sustainable business structure. He reiterated the need to explore all possibilities to normalize the company and protect employees’ jobs.
The management reported that since the beginning of the rehabilitation process, they have prioritized settling small business commerce debts and normalizing supplies, thus stabilizing all aspects rapidly.
However, the union pointed out that the management’s notice to terminate lease agreements for 17 out of 61 leased stores due to failed rent negotiations is an indication of “liquidation under the guise of rehabilitation.”
They also criticized the management for not sharing major issues related to the rehabilitation process with the union beforehand, only informing them afterward and keeping the rehabilitation plans confidential.
The meeting ended in disarray as the union claimed it was merely a unilateral briefing by management and not a genuine discussion, leading them to walk out midway.
Meanwhile, the Seoul Rehabilitation Court has extended the submission deadline for Homeplus’s rehabilitation plan by one month to July 10 from the original date of next month, 12th.
This extension considers that the submission deadline for the evaluation report by the investigation commissioner, which will determine the company’s future, has been postponed to the 12th of next month, likely due to ongoing negotiations over store lease costs, which make up the largest portion of Homeplus’s debt.