Homeplus blocks entrances with carts... Employees informed of closure after arriving for work

Homeplus, a major South Korean retailer, has unexpectedly announced the temporary closure of its large-format stores, effective July 13. The company cited depleted operating funds and challenges in maintaining store facilities as the reasons for the abrupt decision.

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We were informed of the closure fact around 9:50 a.m. after all employees had reported for work.

Customers arriving at stores, such as the Homeplus Megafodmarket in Gangseo-gu, Seoul, were met with entrances blocked by shopping carts and "temporary closure" notices. Many were unaware of the shutdown, having visited for essential items like scissors or knives, only to find operations halted. The official Homeplus website continued to display dozens of stores as "open" throughout the day, exacerbating public confusion.

Employees also faced significant disruption, reportedly being notified of the closure only shortly before 10 a.m. on the day it took effect, after they had already reported for duty. Anjang-yong, a representative from the Mart Industry Union of the Korean Confederation of Trade Unions, stated that employees were informed around 9:50 a.m., with communication methods varying by store, including announcements and verbal instructions from store managers. Some stores reportedly lowered their shutters before informing staff.

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If all Homeplus stores nationwide close, we don't know when or how much they will reduce staff.

The situation has also caused distress for affiliated businesses operating within Homeplus stores. While Homeplus suggested that these vendors could continue operating if they wished, the closure of the main supermarket significantly reduces foot traffic, making sustained business difficult. One employee from a sports apparel store in Yeongdeungpo expressed anxiety about job security, given the widespread closures. "If all Homeplus stores nationwide close, we don't know when or how much they will reduce staff," the employee said, also expressing frustration with the government's handling of the situation.

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This situation is not merely a corporate operational issue; it is the collapse of livelihoods due to predatory speculative capital and a social disaster.

Suppliers are now facing the immediate challenge of managing their inventory. At the Yeongdeungpo store, a vendor selling fermented seafood offered additional discounts to attract customers, lamenting the sudden loss of a major sales channel after nearly 12 years of supplying the store. Homeplus stated that the decision to close was due to reaching a critical point where even minimal operating expenses could not be covered, let alone payments for goods. The company is awaiting a final court decision on July 20 regarding its ability to secure 200 billion won in operating funds, with its future hanging in the balance.

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We desperately requested a 200 billion won operating fund loan from Meritz Financial Group again, the largest creditor, but they have not yet accepted.