Homeplus falls silent as shoppers, workers await July 20 deadline

Homeplus, one of South Korea's major supermarket chains, has temporarily closed its headquarters and 67 hypermarkets because of serious financial problems. Although signs still say the stores are open, the locations are mostly empty, and employees are contacting customers to cancel activities such as culture center classes.

The company's problems have developed over several years. More consumers have moved from traditional supermarkets to online grocery shopping and fast delivery services. Homeplus also faced increasing financial pressure and entered a court-led rehabilitation program in March 2025.

The Seoul Bankruptcy Court later ended the rehabilitation process after Homeplus failed to secure 200 billion won needed for its restructuring plan. The company said it had run out of money to pay suppliers and cover its daily operating costs.

Homeplus is now asking its largest creditor, Meritz Financial Group, for an emergency 200 billion won loan. It also plans to appeal the court's decision and hopes to find enough funding to restart the rehabilitation process.

If Homeplus receives new funding and the court allows the rehabilitation process to continue, the company may be able to restructure and reopen its stores. If it fails, the company could move toward liquidation, meaning its assets may be sold to pay its debts, putting thousands of jobs and businesses at risk.

Edited using generative AI tools. 
Source; https://www.koreaherald.com/article/10807462

Comprehension

Why did Homeplus temporarily close its stores?
How have changes in consumer shopping habits affected Homeplus?
How much money does Homeplus need for its restructuring plan?
What is Homeplus asking its largest creditor for?
What could happen if Homeplus cannot obtain new funding?

Discussion

Why do you think more people prefer online grocery shopping?
Do you prefer shopping at supermarkets or online? Why?
What can traditional supermarkets do to compete with online stores?
What happens to employees when a large company closes its stores?
Should governments help companies that are experiencing serious financial problems?
What are the advantages and disadvantages of fast delivery services?
Would you be worried if your local supermarket suddenly closed? Why?
What do you think Homeplus should do to survive?

Vocabulary

Temporarily – for a limited period of time.
Routine – something that you regularly do.
Struggle – to have difficulty doing or achieving something.
Financial – related to money.
Supplier – a person or company that provides goods to another company.
Restructure – to change the way a company is organized to improve it.
Creditor – a person or company that is owed money.
Liquidation – the process of closing a company and selling its assets to pay its debts.