A total of 27 stores failed to reach agreement following the initial 17
Negotiations with remaining store lessors will continue
"No forced restructuring"
Homeplus announced on May 29 that it has reached agreements to adjust rent and contract terms for 41 out of its 68 leased stores.
Homeplus, which entered corporate rehabilitation proceedings on March 4, is negotiating with lessors to adjust current rents to a reasonable level as part of its efforts to normalize the company. The final deadline for responses regarding contract execution is May 31.
A representative from Homeplus stated, "As of today, two days before the final deadline, we have reached adjustment agreements with the lessors of 41 stores," and added, "Since rent adjustment is a key element for rehabilitation, we have made significant progress, which has greatly increased the likelihood of a successful rehabilitation process."
However, to prevent the expiration of termination rights, Homeplus plans to notify an additional contract termination for 10 stores that are still under negotiation, with court approval. Previously, on May 14, Homeplus had already notified the first round of contract terminations for 17 stores where agreements could not be reached within the deadline.
A Homeplus official said, "This is simply to prevent the expiration of termination rights, and we plan to continue negotiations with the lessors of the 27 stores where agreements have not yet been reached." The official added, "We are narrowing differences with a significant number of lessors and expect positive results."
Homeplus also argued that its proposed adjustment plan is not excessive, citing examples from the U.S. Chapter 11 bankruptcy process, which is similar to Korea's rehabilitation proceedings. According to these examples, retail store rent is reduced by an average of 35-44%, and contract terminations occur in about 35 out of every 100 cases, or approximately 35%.
A Homeplus representative said, "Even if we ultimately fail to reach agreements with some lessors, we will guarantee the employment of all employees at the affected stores, and there will be no forced restructuring." The representative continued, "We will apply the 'Employment Stability Support Program' to employees at these stores, reassigning them to nearby locations and providing encouragement payments to help them quickly adapt to their new workplaces. We will actively support them in this process."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
