On the 5th, Homeplus announced that it expects to reach an agreement on the adjustment of rent and contract terms for 48 out of 68 rental stores.
Homeplus, which is undergoing corporate rehabilitation proceedings, has been negotiating with rental property owners to reduce rent since early April for a total of 68 rental stores. As of the 29th of last month, agreements on rent and contract adjustments were completed for 41 stores, and it is expected that agreements can also be reached for 7 additional stores.
Previously, Homeplus had notified the termination of contracts for 27 stores where agreements were not reached by the court-set deadlines for compliance responses on May 15 and May 31 to prevent the expiration of the right to terminate. However, this was to prevent the right to terminate from disappearing, and negotiations with the rental property owners have continued even after the termination notices were delivered.
The company plans to do its utmost to negotiate until the last moment to minimize store closures. However, even if agreements are ultimately not reached, it stated that the employment of all employees affiliated with the affected stores will be guaranteed. Homeplus explained that it plans to actively support employees by applying the "employment stability support system" to transfer them to nearby stores and providing incentives to help them quickly adapt to new workplaces.
A Homeplus representative said, "By successfully concluding rent adjustment negotiations, which are a key factor in the success of the rehabilitation process, we will complete the rehabilitation proceedings early and achieve business normalization in the near future."