Homeplus to close 37 suspended stores, implement voluntary retirement

Homeplus, currently undergoing corporate rehabilitation proceedings, has announced the closure of 37 large-format stores that have suspended operations. The retail giant will also offer a voluntary retirement program to employees working at these soon-to-be-closed locations.

The decision to shut down these underperforming stores was communicated to the labor union via an official notice. Homeplus had previously suspended operations at these 37 stores, out of a total of 104 large supermarkets, since last month, focusing on maintaining operations at its 67 core branches.

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The only way to recover is through a sale to a third party with guaranteed financial backing and management capabilities, similar to what happened with Express.

Company officials stated that the store closures are a strategic move to enhance the likelihood of a successful merger and acquisition (M&A) before the court's approval of its rehabilitation plan. Homeplus emphasized that selling to a third party with guaranteed financial backing and management expertise is the sole path to recovery. Restoring the operational normalcy and competitiveness of its key stores is deemed crucial for the success of any potential M&A deal.

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To ensure the success of M&A before approval, it is paramount to normalize the operations of core stores and restore their competitiveness to previous levels.