Seoul: Financially troubled discount store chain Homeplus Co. announced Monday that it would temporarily close its outlets starting Monday due to a lack of operating capital and challenges in maintaining store operations. This decision follows the termination of Homeplus' rehabilitation proceedings by the Seoul Bankruptcy Court on July 3, after the company failed to secure the 200 billion won (US$130 million) required to implement its self-rescue plan.
According to Yonhap News Agency, the retailer, which is fully owned by private equity firm MBK Partners, has been facing financial difficulties due to a prolonged downturn in the discount store industry. Homeplus entered court-led rehabilitation in March 2025 in an attempt to resolve its financial issues. The company has requested a 200 billion-won working capital loan from its largest creditor, Meritz Financial Group, but the request is still pending approval.
"Most of our operating funds have been completely exhausted, leaving us unable to make payments to suppliers or cover operating expenses needed to keep our stores open," a company official stated. As a result, both Homeplus' headquarters and all discount stores will suspend operations starting Monday to ensure security and safety until circumstances improve.
MBK Partners acquired a 100 percent stake in Homeplus from British retailer Tesco Plc in 2015 for 7.2 trillion won. The acquisition was part of MBK's efforts to expand its presence in the Asian retail market. However, the ongoing financial struggles have now forced Homeplus to pause its operations, leaving the future of the retailer uncertain.