Homeplus clears liquidation hurdle, but what challenges remain?

Embattled retailer Homeplus staved off immediate liquidation after winning court approval for its restructuring plan, but it still faces steep hurdles to achieve a full recovery, industry watchers said Thursday. The court's decision on Wednesday took immediate effect, formally allowing Homeplus to carry out the debt repayment and restructuring measures outlined in the plan. However, the company must stabilize its cash flow, restore normal operations, sell real estate assets and ultimately secure a new buyer to achieve a full recovery. The retailer, controlled by private equity firm MBK Partners, entered corporate rehabilitation in March 2025 but saw the proceedings terminated last July after failing to secure the minimum 200 billion won ($147 million) in operating funds required to implement its rehabilitation plan. It later secured emergency debtor-in-possession financing from Meritz Financial Group, prompting the court to reverse the termination decision. Immediate risks stem from administrative claims, including payments owed to suppliers, which take priority over standard rehabilita