Homeplus plans sale of 5 stores by next year to raise restructuring funds

(Lee Seung-hwan)

Homeplus, which is undergoing court-led corporate rehabilitation, is pushing ahead with plans to sell five stores by next year as part of efforts to secure funds for debt repayment and business normalization, according to its restructuring plan obtained by Maeil Business.

Under the plan, Homeplus intends to sell two stores already in the process of signing sales contracts—the Yuseong and Donggwangju locations—followed by three additional stores next year: Seosu-won, Yatap and Jinhae. The sales will proceed with the consent of Meritz Financial Group, which holds beneficiary rights under collateral trusts on the properties. The five stores are expected to generate a combined 407.5 billion won ($283 million).

A creditor-side official cautioned that not all sold stores would necessarily close, noting that whether they continue operating under a lease-back arrangement will depend on negotiations with buyers. “Homeplus is in urgent need of liquidity, so it plans to sell five stores that can be converted into cash quickly,” the official said.

The restructuring plan reflects Homeplus’s intention to pursue business normalization after its sale attempt fell through. Rather than liquidation, the company has made clear that it is aiming to preserve operations while restructuring under court protection.

According to the plan, proceeds from real estate sales will, in principle, be used to repay rehabilitation claims. With creditor approval, however, some of the funds may be allocated as operating capital to help the company overcome its liquidity crunch and stabilize day-to-day operations.

In addition to store sales, Homeplus plans to divest its Express supermarket business unit within this year to further secure repayment resources and operating funds. The company also said it is considering additional store disposals on the premise of selling properties and then re-entering them as tenants.

(Lee Seung-hwan)

At the same time, Homeplus will gradually shut down underperforming leased stores where prolonged losses are expected. Out of its 117 stores, 41 locations deemed to have low profitability are slated for phased closures.

On workforce restructuring, the company plans to rely primarily on natural attrition. With a large number of long-tenured employees, Homeplus expects annual retirements to continue, while additional voluntary departures are likely as some workers opt not to relocate following store closures. Management believes that suspending new hiring alone could result in a substantial reduction in headcount. Workforce cuts at headquarters are also planned as part of a broader burden-sharing effort.

(Lee Seung-hwan)

Through these measures, Homeplus has set a target of returning to profitability by 2028. A restructuring expert said the plan appears to be a rehabilitation-focused proposal aimed at maintaining operations by securing repayment funds through selective asset and business sales, while eliminating unprofitable stores.

The restructuring plan outlines three main funding sources for debt repayment: store sales, the divestment of the Express supermarket unit, and debtor-in-possession, or DIP, financing. Among these, the most immediate challenge is securing 300 billion won in DIP financing to fund urgent operations. Without execution of the DIP facility within this month, the rehabilitation process itself could be jeopardized, as the company is already facing a severe cash shortage.

Homeplus is currently seeking financial investors to provide the DIP financing. Industry sources said the company is leaning toward negotiating terms with a small number of designated investors rather than raising funds from a broad investor pool.

The court has asked creditors to submit their views on the restructuring plan by Tuesday. After reviewing creditor feedback, the court will decide whether to approve the plan. If approved, Homeplus plans to gather stakeholder opinions and finalize the proposal as early as March, after which the court will convene a creditors’ meeting to determine final authorization.