Homeplus to Temporarily Close All Stores Amid Capital Shortage and Bankruptcy Court Ruling

South Korean discount retailer Homeplus, wholly owned by private‑equity firm MBK Partners, announced that from July 13 its headquarters and all large‑format stores will be temporarily shut down. The move follows the Seoul Bankruptcy Court’s July 3 decision to terminate Homeplus’s court‑led rehabilitation after the company failed to secure the required 200 billion won (about US$130 million) for a rescue plan.

Homeplus said its operating funds are exhausted, leaving it unable to pay suppliers, utility bills or other operating expenses. The company has appealed to its main creditor, Meritz Financial Group, for a 200 billion‑won working‑capital loan, which has not been approved. The court gave Homeplus until July 20 to present a credible 2 trillion‑won emergency‑financing proposal; failure could lead to a court‑ordered “견련파산” bankruptcy. The shutdown threatens roughly 12,000 employees, about 4,600 supplier firms and public‑interest claims estimated at around 1 trillion won.

South Korea’s finance ministry has set up a task force to monitor the situation, offering substitute wage payments and low‑interest loans to affected workers. Labor unions have called for government intervention, describing the episode as a social disaster caused by predatory private‑equity ownership.