The head office of Home Plus in Seoul. The cash-strapped discount chain faces the risk of liquidation after the court ended its rehabilitation proceedings. Photo by Home Plus
July 3 (UPI) — South Korea’s Home Plus faces the risk of liquidation as the court halted the rehabilitation proceedings for the country’s troubled discount chain after overseeing the case for 16 months.
The court said Friday that it reached the decision because the restructuring plan of Home Plus lacks feasibility as the company’s business continued to deteriorate while it failed to find a new owner.
“In this climate, Home Plus requires at least $130 million in working capital to sustain its business and implement the proposed rehabilitation plan. But the necessary funding has yet to be secured,” the court said in a statement.
MBK Partners, one of the largest private equity firms in Asia, acquired Home Plus in a multi-billion-dollar deal in 2015. After years of mounting losses, however, the retailer entered a court-led restructuring program in early 2025.
Giving up its rights to more than $1.5 billion in common equity of Home Plus, MBK spent more than a year searching for a buyer but failed to strike a deal.
Amid the prolonged financial strain, Home Plus has steadily downsized its sales network. It ran more than 140 hypermarkets nationwide in the mid-2010s but now has just 67 stores.
Home Plus can appeal the ruling within two weeks. To avoid the worst-case scenario, the company has asked its largest creditor, Meritz Financial Group, to offer the funding needed to pursue the appeal.
“The court said that if Home Plus secures $130 million in working capital within two weeks and files an immediate appeal, it would be possible to reconsider the case and resume the rehabilitation proceedings, “Home Plus said in a statement.
“We earnestly ask Meritz Financial Group to provide a $130 million loan,” it added.
Home Plus is not publicly listed.