Homeplus buyer search clouded by debt, labor challenges

Homeplus, which had been on the brink of liquidation, cleared a major legal hurdle with the court’s approval of its rehabilitation plan earlier this month. But while finding a new owner to continue the business is essential to Homeplus’ long-term recovery, it remains uncertain whether the company can attract a buyer given its substantial liabilities, labor-related challenges and a structural slump in traditional retail, industry officials said Monday. The decision by the Seoul Bankruptcy Court on Sept. 2, following a creditors’ meeting, formally allowed the retailer, controlled by private equity firm MBK Partners, to carry out the debt repayment and restructuring measures outlined in the plan. “After selling closed stores, we will pursue a merger and acquisition of the company itself to repay the remaining debt,” MBK Vice Chairman and Homeplus co-CEO Kim Kwang-il told the meeting. The retailer plans to divest 19 company-owned properties out of its 54 defunct locations by February 2028 to satisfy its outstanding debt obligations, and then push for a full company sale to fulfill