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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Concerns are mounting that the recovery prospects of Homeplus are rapidly deteriorating, as its largest creditor Meritz Financial Group remains reluctant to extend short-term funding despite pending asset sale proceeds.
According to industry sources on May 18, Homeplus has requested an emergency bridge loan from Meritz, offering proceeds from the sale of its supermarket unit as collateral. The retailer said it intends to repay the loan immediately upon receiving the funds from the transaction.
However, discussions have shown little progress, fueling speculation in the financial sector that Meritz may be taking a cautious view of Homeplus’ recovery prospects and financial stability.
The liquidity strain has already begun to impact operations. On May 10, Homeplus temporarily suspended operations at 37 of its 104 hypermarket stores, leaving only 67 locations currently open.
Payroll disruptions are also intensifying. The company reportedly paid only half of March wages, has yet to pay April salaries, and is expected to miss its May payroll due on May 21.
Homeplus secured approximately KRW 120 billion by selling its Homeplus Express supermarket division to Harim, but the proceeds are not expected to be received until late June, leaving a critical funding gap in the interim.
With cash reserves nearly depleted, industry observers warn that Homeplus may struggle to sustain operations until the inflow of funds, further dimming hopes for a successful turnaround.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
