Homeplus recently apologized to all stakeholders, including partners, tenants, and creditors, who are experiencing difficulties due to corporate rehabilitation, and stated that it would take a responsible approach by repaying all debts so that no one is harmed by this rehabilitation process. It was noted that a total of 340 billion won in commercial transactions had been repaid as of the previous day, promising to repay all debts.
Homeplus CEO Jo Joo-yeon said at a press conference held at the Homeplus headquarters in Gangseo-gu, Seoul, on the morning of the 14th, "I will do my best to normalize the company as soon as possible to minimize the damage and inconvenience for many people." He added, "Thanks to the court's swift decision to initiate rehabilitation proceedings, we are currently moving towards normalization rapidly."
At the press conference, institutional sector heads, including co-CEO Kim Kwang-il, attended. Kim is the vice chairman of MBK Partners, Homeplus's largest shareholder.
CEO Jo emphasized that "thanks to the court's swift decision to initiate rehabilitation proceedings, we are currently moving towards normalization rapidly," and that they would fully repay the commercial transactions that have been sequentially paid since the 6th.
He stated, "As of the 13th, a total of 340 billion won in commercial transactions has been repaid, and most debts owed to small business owners, excluding large corporations and brand tenants, will be paid soon." He continued, "As of the 13th, the cash reserves are about 160 billion won, and considering that cash is flowing in daily through operations, there will be no problem with the payment of remaining commercial transactions."
CEO Jo noted, "We are sequentially paying the commercial transactions owed to partners and leaseholders, and even if it takes some time, all will be paid."
CEO Jo stated that Homeplus is showing positive performance indicators in its operations. He remarked that sales for the week since the initiation of rehabilitation proceedings on the 4th increased by 13.4% compared to the same period last year, achieving the highest performance ever, and the customer count also increased by 5%, demonstrating good results regardless of the rehabilitation proceedings.
According to Homeplus, as of the 13th, the maintenance rates for hyper, super, and online transactions remain at about 95%. The rates for malls are at 99.9%, logistics at 100%, and contracting companies at 100%, showing levels consistent with those before the initiation of rehabilitation proceedings.
He stated, "The improvement in performance is due to the sales increase of the food-specialized store Homeplus Mega Food Market, launched in 2022, the growth of the online sector, and the membership count exceeding 11 million, indicating a significant expansion of the customer base. We expect continued growth in the future."
He also requested the understanding of large corporations for normalization. CEO Jo said, "Realistically, it is difficult to repay all debts at once," but noted, "We are prioritizing debts owed to small businesses and are in the process of making sequential payments." He emphasized, "Understanding from our large corporate partners is essential for this, and if they could be a little flexible, we will definitely repay all debts according to the partitioning schedule."
Kim Kwang-il, vice chairman of MBK Partners, commented regarding asset-backed short-term bonds (ABSTB) investors, saying, "In principle, they are ultimately creditors of Homeplus as well," adding that "since ABSTB has liquidated goods receivables, we plan to think and act from the debtor's perspective to ensure full repayment within the rehabilitation proceedings."
However, he drew a line saying that he has never been involved in the process of ABSTB being sold to individual investors. Vice Chairman Kim explained, "It was not the case that the securities company liquidated and the company sold them at retail; the company purchased goods with credit cards, and the securities company bought and liquidated the sales claims against Homeplus held by the card company. He stated that he was not involved in the subsequent process.