South Korean discount store chain **Homeplus Co.**, facing significant financial distress, announced Monday its decision to temporarily close all its outlets, effective immediately. This drastic step is attributed to a critical lack of operating capital and overwhelming challenges in sustaining daily store operations.
This widespread closure follows the **Seoul Bankruptcy Court’s termination of Homeplus’ rehabilitation proceedings on July 3**. The court’s decision was based on the company’s failure to secure the crucial 200 billion won (approximately $130 million) deemed necessary to execute its proposed self-rescue plan.
Wholly owned by private equity firm **MBK Partners**, the retailer has been grappling with severe financial strain amidst a prolonged downturn in the broader discount store industry. Homeplus had initially entered court-led rehabilitation in March 2025, seeking a path to financial recovery for its numerous stores.
In a final effort to secure vital funds, Homeplus had formally requested a 200 billion-won working capital loan from its largest creditor, **Meritz Financial Group**. However, as of Monday, this essential funding request remains unaccepted, further exacerbating the company’s severe liquidity crisis.
A company official highlighted the dire situation, stating, “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.”
Consequently, both Homeplus’ corporate headquarters and all its retail discount stores will suspend operations starting Monday. This comprehensive suspension is intended to ensure the security and safety of premises and assets until the company’s financial circumstances can be resolved.
