Homeplus executives publicly apologized to retailers and investors for disruptions caused by the company’s recent court receivership process and vowed to settle all outstanding debts.
The company confirmed that, as of March 13, it had paid 340 billion won ($234 million) in commercial receivables.
“We are doing everything we can to normalize operations as quickly as possible,” Homeplus CEO Joh Joo-yun said at a press conference on March 14. “We apologize to all partners, suppliers, and investors inconvenienced by the rehabilitation process.”
She credited the court’s swift decision to approve the corporate rehabilitation process, allowing the company to move quickly toward recovery.
“We paid 340 billion won in commercial receivables, with payments made to small businesses and retailers first,” Joh said. She said most commercial receivables, excluding those involving large firms and brands, will soon be paid off. She further reassured stakeholders of the company’s financial stability, noting that Homeplus currently holds 160 billion won in cash.
Joh added that fully paying off receivables all at once was proving difficult, and stressed that Homeplus is prioritizing payments to small and medium-sized firms. “We ask for understanding from larger partners,” she said. “We will settle all debts according to schedule.”
Homeplus entered corporate rehabilitation on March 4. The retailer said it filed for rehabilitation due to short-term liquidity pressures that may arise after credit rating agencies lowered its credit rating.
Homeplus, which operates 126 stores and employs about 20,000 people, is the second-largest discount store chain in Korea, behind Shinsegae Group’s Emart chain. Its largest shareholder, private equity firm MBK Partners, acquired a 100% stake in Homeplus for 7.2 trillion won in 2015.
