Homeplus enters crucial test for turnaround as 67 stores reopen

Homeplus resumed normal operations at 67 stores on Thursday following a temporary shutdown brought on by the risk of liquidation, with its performance over the next three weeks likely to be critical to its survival, according to industry officials.

The Seoul Bankruptcy Court has scheduled a creditors’ meeting for Sept. 2 to review and vote on the retailer’s revised rehabilitation plan, two days before the Sept. 4 deadline for the court to approve the plan.

Homeplus submitted its second revised rehabilitation plan to the court, Wednesday, with the upcoming creditors’ meeting expected to be a decisive turning point for the company.

Failure to secure approval for the plan could lead to the termination of the court-supervised rehabilitation process.

The court would then determine whether Homeplus has a viable path forward before considering bankruptcy proceedings.

The reopening of the 67 stores comes about a month after they were temporarily closed as the company struggled to pay suppliers and landlords amid a shortage of operating funds.

The court initially moved to terminate Homeplus