Discount retailer Homeplus files for corporate rehabilitation

Homeplus, Korea's second largest discount chain, has taken steps for corporate rehabilitation 10 years after the acquisition of the private equity fund MBK Partners. The company opted for corporate rehabilitation, facing a decline in credit rating due to prolonged poor sales performance and a weakening financial structure to repay short-term funds. However, all retail channels, including Homeplus Mart, Express, and the online business, will continue operations.

On Tuesday, the 4th Division of the Seoul Rehabilitation Court announced that it had decided to initiate rehabilitation procedures for Homeplus and give comprehensive permission to continue business. Homeplus applied to launch corporate rehabilitation procedures for preemptive restructuring at 12:03 a.m. on the same day, and the court decided to initiate the procedure 11 hours after the application was made after an undisclosed hearing with the business representative at 10 a.m. “Homeplus’ business is under operation and is not bankrupt, but its commercial paper and short-term bond credit ratings have been downgraded, raising the risk of a financial crunch in May if its financial structure does not improve,” said the court.


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