Homeplus, a retail company, applied for corporate rehabilitation proceedings at the Seoul Bankruptcy Court on the 4th. The court conducted a private representative hearing at 10 a.m. and decided to commence the rehabilitation process 11 hours after the application. However, operations at Homeplus’s hypermarkets, express stores, and online channels will continue as normal. The photo shows a Homeplus store in Seoul on the 5th.
With the commencement of Homeplus’s rehabilitation proceedings, concerns about store closures have risen in Daegu and Gyeongbuk. However, Homeplus has stated that no additional closures have been decided. On the 5th, Homeplus clarified that rumors regarding the potential closure of the Chilgok store in Daegu are unfounded. A Homeplus representative mentioned that the Chilgok store performs well in sales, and talks of closure seem to have arisen due to the approaching end of its lease contract, but no decision has been made.
Previously, Homeplus closed its Daegu Stadium store and its first Daegu store in Chilseong-dong in 2021 due to management difficulties. The start of the corporate rehabilitation process has sparked concerns in the region about potential additional closures leading to mass unemployment. Homeplus has made clear its stance that there are no plans to close any stores in Daegu and Gyeongbuk for the time being. They also indicated the possibility of converting some existing stores into Mega Food Markets if necessary.
Additionally, the land for the Naedang store has already been sold, and its closure is planned for the second half of this year. However, it is reported that Homeplus plans to lease the space again and reopen once the site undergoes development.