"Is Homeplus actually open for business?" Empty shelves… Wages delayed, electricity set to be cut off

"It is not just the fresh vegetables. We do not know when other products will arrive either."

On the morning of the 10th, a deep sense of disappointment permeated the fresh food section of Homeplus Gangseo branch, the company's flagship store, as employees bowed their heads and customers turned away. The corner selling dressings, salads, and ready-to-eat fruit was almost devoid of those items. Instead, only canned fruits and boxed fruits were displayed. The seafood section was in a similar state. The top shelves of the aquariums and frozen display cases, where flounder and king crab should have been, were empty. Some shelves were filled with seemingly out-of-place bowls and cutting boards.

As Homeplus's financial difficulties deepen, a sense of crisis looms that the company is effectively on the brink of collapse. Three months after reopening in mid-August, operating funds have run dry, leaving employee wages several months behind. It is also known that some stores are scheduled to have their electricity cut off due to unpaid utility bills. Additional store closures are certain, and in the worst case, a declaration of self-bankruptcy cannot be ruled out.

According to industry sources, Homeplus has yet to pay 50% of its August wages this year. The company paid 50% of wages on two occasions, on the 23rd of last month and the 6th of this month, but the timing for paying the remaining salary is uncertain. Wages for September and October are also highly likely to be delayed.

Homeplus implemented a voluntary retirement program last month, with approximately 400 employees applying, but it was fully withdrawn midway. This was because the company failed to secure funds to pay the remaining wages and severance promised to those who applied. Previously, some stores that ended operations had unpaid electricity bills of about 10 billion won and received a notice of impending power disconnection from Korea Electric Power Corporation.

Homeplus employees and staff, who once numbered over 19,000, have been reduced by more than half to around 9,000. The Homeplus labor union claims that the "employment crisis" feared by the government and political circles has already become reality.

Homeplus posted brief strong results for about two weeks immediately after reopening, but failed to normalize product supply, with recent sales reportedly falling below 30% of target sales. While employee wages alone require funds in the range of 23 billion won per month, at current sales levels, it is difficult to cover even 10 billion won in monthly labor costs.

The M&A process, Homeplus's final card for recovery, is also facing difficulties. The company is currently exploring acquisition intentions with some firms, but there are no clear results, according to sources. Industry experts cite the potentially large scale of Homeplus's contingent liabilities and the limited restructuring capacity of acquirers due to a strong labor union as the biggest hurdles to an M&A deal.