Homeplus' restructuring plan scrapped as court ends rehab process

South Korea's Seoul Bankruptcy Court terminated the corporate rehabilitation proceedings for retailer Homeplus, stating that the revised plan had no realistic chance of execution. The decision follows Homeplus' failure to secure the roughly 2 trillion won (US$1.5 billion) of operating funds essential for the recovery plan, after a series of delayed extensions and an abortive M&A strategy that left public‑interest claims mounting.

The court noted that Homeplus could not demonstrate a viable source of the required funding, despite having sold its Express division. Without the additional capital, the company's ability to meet payroll, supplier payments and tax obligations was deemed unsustainable.

In response, the government announced emergency measures to cushion the fallout: workers will receive up to 21 million won per person for unpaid wages, low‑interest living‑cost loans, and enhanced unemployment benefits. A 4.4 trillion‑won liquidity package will be provided to small suppliers and merchants, including guarantees and loan‑rate cuts. Additional support programmes aim to aid re‑employment and protect small‑business owners.

Analysts warn that, unless new funding is secured within the court‑granted 14‑day appeal window, Homeplus faces liquidation, which could threaten thousands of jobs, disrupt supply chains and depress local retail markets.