Homeplus to shut seven more stores as liquidity crunch deepens

(Lee Seung-hwan)

Homeplus, which is undergoing court-led corporate rehabilitation, will suspend operations at seven additional stores nationwide as worsening cash flow pressures force the retailer to accelerate restructuring.

In a message to employees on Wednesday, Homeplus said its already strained financial situation had failed to improve, announcing the closure of seven locations including the Munhwa, Busan Gamman, Ulsan Nam-gu, Jeonju Wansan, Hwaseong Dongtan, Cheonan and Jochiwon stores.

The decision comes as Homeplus’ liquidity crisis intensifies. After splitting wage payments last month, the company has also postponed salary payments this month, underscoring mounting financial stress.

The retailer had previously reviewed plans to shut down 15 loss-making stores in August last year after failing to reach rent negotiations with landlords, but later put the move on hold. However, a recent wave of delivery delays and supply suspensions has sharply worsened cash flow, prompting Homeplus to move ahead with high-intensity restructuring. Following earlier closures at the Gayang, Jangrim and Ilsan stores, the company is now adding seven more outlets to the list.

Homeplus said it plans to protect employment despite the closures, noting that workers at the affected stores will be reassigned to nearby locations where possible.

The company also confirmed that it has decided to defer employee wage payments for this month as it grapples with ongoing funding difficulties.