Homeplus to Suspend Operations at 7 More Stores Citing Financial Limits

Management Message to Employees on January 14

Homeplus has decided to suspend operations at seven additional stores due to worsening financial conditions.

On January 14, Homeplus announced in a management message to employees that it would cease operations at seven locations: Munhwa, Busan Gamman, Ulsan Namgu, Jeonju Wansan, Hwaseong Dongtan, Cheonan, and Jochiwon.

Yonhap News Agency

Homeplus explained the reason for the additional suspensions, stating, "Our financial situation, which has reached its limits, has not improved," and added, "We plan to guarantee employment for employees at the affected stores by transferring them to other locations and through other measures."

Previously, after entering corporate rehabilitation proceedings and seeing its financial situation deteriorate, Homeplus decided to close 15 loss-making stores in August last year to improve cash flow, but postponed the closures on the condition of eased transaction terms.

However, as the situation worsened due to delayed and halted deliveries, the company suspended operations last month at the Gayang, Jangnim, Ilsan, Woncheon, Ulsan Bukgu, Gyesan, Siheung, Ansan Gojan, Cheonan Sinbang, and Dongchon stores.

Choi Cheolhan, Secretary General of the Homeplus branch of the Mart Labor Union, protested, saying, "Regardless of whether approval is granted, the company is pushing ahead with an unprecedented large-scale suspension of operations, effectively moving toward the dismantling of Homeplus."