Homeplus revenue plummets as rehabilitation faces bleak outlook

Homeplus's daily revenue has drastically shrunk to 2.7 billion won, a mere fraction of the 23.8 billion won it saw before filing for corporate rehabilitation 16 months ago. This sharp decline, documented in data submitted to lawmaker Lee Hae-min, highlights the severe deterioration of the retail giant's operating base.

The company's financial struggles have led to a significant reduction in its physical footprint. Homeplus operated 126 stores in March of last year, but this number has dwindled to 67 due to continuous closures and suspensions. As of July 13, all remaining stores have temporarily halted operations.

While a 200 billion won emergency loan from its largest creditor, Meritz Financial, has provided a temporary reprieve, the company's long-term viability remains uncertain. Homeplus holds only 20.7 billion won in liquid assets, yet faces 928.4 billion won in unpaid public claims, including 612.2 billion won owed to suppliers.

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Homeplus was already posting losses in 2024 when it was operating normally. Continuing rehabilitation in this worsened state will be mere life support.

Industry insiders express skepticism about Homeplus's rehabilitation prospects. "Retail businesses operate on a 30-day payment cycle for supplies," noted one industry official. "Given past defaults and a D credit rating, few companies will be willing to supply them again." The official added, "Homeplus was already posting losses in 2024 when it was operating normally. Continuing rehabilitation in this worsened state will be mere life support."

Meanwhile, the Seoul Rehabilitation Court has extended the deadline for Homeplus to submit its rehabilitation plan until September 4, canceling its previous decision to terminate the proceedings. The court cited the secured emergency funding as resolving the operational capital shortage. However, political circles continue to question the responsibility of the major shareholder, MBK Partners, with lawmaker Lee Hae-min criticizing the firm for prioritizing interest payments over investments in Homeplus's future competitiveness.

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MBK Partners' acquisition has led to over 2 trillion won in interest payments over 10 years, while asset investment for the future amounts to only 760 billion won, leaving Homeplus's future competitiveness hollow.