NS Shopping, an affiliate of Harim Group, has announced a definitive agreement to acquire Homeplus Express, the supermarket division of financially challenged retailer Homeplus. This strategic acquisition was confirmed on Thursday.
The acquisition deal stipulates that Homeplus will receive 120.6 billion won (approximately $83 million USD) in cash from NS Shopping. Additionally, NS Shopping will take on a portion of Homeplus Express’s existing liabilities. Homeplus Express currently reports total assets of around 317 billion won and net assets amounting to 146 billion won.
This strategic acquisition marks a significant expansion for NS Shopping, moving beyond its traditional TV home shopping and mobile commerce operations into the nationwide offline retail and logistics sector. For its parent company, Harim Group, South Korea’s leading poultry processor, this deal establishes a vertically integrated ‘food-to-retail’ business model, enhancing its market position across the entire value chain.
NS Shopping has characterized the acquisition as a “turning point” designed to significantly enhance its competitive edge across both online and offline retail channels. A company official stated, “We are committed to carefully reviewing all relevant matters and will do our utmost to ensure the remaining acquisition procedures proceed smoothly and efficiently.”
Conversely, for Homeplus, the sale provides a crucial and much-needed liquidity injection, vital for stabilizing its operations during ongoing rehabilitation proceedings. Despite this financial boost, the company has indicated that additional funding remains necessary to fully execute its recovery plan.
In a recent statement, Homeplus explained its continuing financial challenges: “As the sale proceeds will not be received for another two months, we require immediate additional liquidity to fund daily operations until the cash inflow materializes and to effectively implement our comprehensive rehabilitation plan.”
Homeplus initiated court-led rehabilitation proceedings in March of the previous year, actively seeking to divest its supermarket division as a critical measure to secure essential operating funds. The Seoul Bankruptcy Court has established a firm deadline of July 3 for the approval of the retailer’s proposed rehabilitation plan, highlighting the urgency of its financial restructuring.
