Homeplus faces deepening survival crisis; union calls for government aid

Homeplus, which is undergoing court-led corporate rehabilitation, is facing a deepening survival crisis amid mounting financial difficulties, including unpaid supplier bills, delayed wages and overdue utility payments, industry officials said Wednesday. The company's prolonged search for a buyer has added to uncertainty over its future, prompting its labor union to urge the government to provide emergency funding to prevent further job losses. The major supermarket chain filed for rehabilitation with the Seoul Bankruptcy Court in March last year following a credit rating downgrade. It subsequently suspended operations at some stores before reopening some of them in mid-August this year, but continues to struggle with weak sales and supply disruptions. According to industry insiders, Homeplus failed to fully settle payments in cash to some fresh food suppliers on Oct. 30. The retailer paid 90 percent of amounts owed for agricultural and seafood products in cash, offsetting the remainder against existing supplier deposits. Payments for meat and deli products were covered entirely by those