홈플러스 주식회사
Homeplus is a major South Korean retailer that began as part of Samsung C&T in 1997 and grew through a joint venture with Tesco. It rebranded to Homeplus in 2011, expanded into the convenience store sector with ‘Homeplus 365,’ and became the second-largest hypermarket chain in Korea. In 2015, Tesco sold the company for approximately $4.91 billion to the MBK Partners consortium due to Tesco’s own financial struggles. As of 2024, Homeplus operated 127 hypermarkets and 413 Express stores across the country.
Initiation of Insolvency Proceedings
On March 4, 2025, Homeplus officially filed for corporate rehabilitation with the Seoul Bankruptcy Court to support its preemptive restructuring efforts. The court approved the request, judging that while the company was not bankrupt in terms of settling payments, it was expected to struggle with liquidity by May 2025 without financial restructuring. The court allowed Homeplus’ current executives to remain in management and granted a comprehensive permit for business continuity, allowing them to continue operations, including dealing with subcontractors, running discount events, and paying employee wages, during the rehabilitation process.
Key Reasons for Insolvency Filing
Homeplus’s decision to file for rehabilitation was driven by deteriorating financial health and the choices made under MBK Partners’ ownership:
- High Debt Burden: Over $3 billion of the acquisition price was financed through loans.
- Focus on Dividends: Since the 2015 acquisition, MBK Partners received $1.7 billion in dividends while simultaneously working to repay 4 trillion won in loans, suggesting a focus on financial returns rather than reinvestment in the business.
- Lagging Digital Transformation: The pandemic accelerated the growth of online retail, but Homeplus failed to keep pace with competitors like Coupang. Its sales dropped by nearly 12.6% over ten years under MBK’s ownership.
- Three Consecutive Years of Operating Losses: Homeplus recorded operating losses for three years, totaling $334 million between 2021 and 2023, largely driven by declining consumer sentiment and the long-term impact of the COVID-19 pandemic.
- Asset Stripping: MBK Partners sold or leased back approximately 20 profitable, well-managed stores (instead of underperforming ones) to raise cash. This move was criticized by industry observers for undermining the company’s market competitiveness.
The company’s financial deficit led to a credit rating downgrade, increasing its financing costs. Allegations have also surfaced that Homeplus continued to issue and sell commercial paper (short-term unsecured promissory notes) to investors right up until the month before the filing. Despite its current total financial debt of approximately $1.37 billion, the company stated it holds $3.21 billion in real estate assets and does not currently plan drastic restructuring measures.
Outlook for the Future
Homeplus is actively pursuing an M&A partner to prevent bankruptcy. The largest shareholder, MBK Partners, is reportedly forfeiting its entire 2.5 trillion won investment and canceling its shares without compensation. This move could significantly drop the final sale price below the company’s $3.7 billion liquidation value, presenting a rare opportunity.
This “fire sale” has attracted interest from major players, including Naver, GS Group, Hanwha Group, Coupang, and AliExpress, who see a chance to acquire Homeplus’s network of 126 large stores and valuable nationwide real estate. However, the deal faces significant challenges, including the retailer’s shrinking revenue, a powerful labor union, and the uncertain future of offline retail. The final purchase price will depend on a prospective buyer’s ability to envision and execute a successful company turnaround.
Homeplus is attempting to restore market trust by reporting that weekly sales have risen 13.4% year-over-year since the rehabilitation process began. Nevertheless, investment banking insiders stress that MBK Partners needs to present a concrete self-rescue plan to solidify market confidence.
Sources
- https://namu.wiki/w/%ED%99%88%ED%94%8C%EB%9F%AC%EC%8A%A4%20%EB%B2%95%EC%9D%B8%ED%9A%8C%EC%83%9D%20%EC%A0%88%EC%B0%A8%20%EC%8B%A0%EC%B2%AD%20%EC%82%AC%EA%B1%B4
- https://www.epnc.co.kr/news/articleView.html?idxno=314234
- https://world.kbs.co.kr/service/news_view.htm?lang=e&Seq_Code=191357
- https://biz.chosun.com/en/en-finance/2025/04/22/DAYPF225EBC6TOLRVJEPXHECNU/
- https://www.koreatimes.co.kr/business/companies/20250615/is-anyone-willing-to-acquire-homeplus-as-its-value-drops
