Homeplus reopens dozens of stores, but recovery remains uncertain

Homeplus, a supermarket chain in court-led rehabilitation, reopened some stores on Friday after more than a month of suspended operations, though business remains far from normal.

“I hope Homeplus stays open for the surrounding businesses and the people who work here,” said Park Jeong-eun, a nearby rice roll shop worker who was shopping at the Homeplus Wolgok store in Seongbuk District, central Seoul.

“When Homeplus closed, the number of people coming and going dropped sharply, and all the nearby restaurants and cafes suffered”

Park said they could once again shop for ingredients without leaving the building where they work.

Homeplus soft-opened 67 stores nationwide on Friday and plans to formally resume operations on Thursday. The reopening became possible after the Seoul Bankruptcy Court approved 200 billion won ($142 million) in emergency operating funds provided by the retailer's creditor Meritz Financial Group.

Inventory is at just 30 percent of normal levels, but Homeplus plans to restock gradually through Wednesday.

At the Wolgok store on Friday, many shelves were still empty. Throughout the store, signs indicated that “shelves are being restocked” as employees unpacked goods from dozens of blue plastic crates.

“Do you have underwear in stock?” a customer asked an employee, only to walk away after being told it had not arrived yet.

A young couple was also seen roaming the store for some time with a large shopping cart before returning it at the entrance and leaving after failing to find what they wanted.

Despite returning to work, Homeplus employees remain anxious about what lies ahead.

“We have to follow whatever instructions headquarters gives us, so I don’t know what’s going to happen from here,” an employee at the Wolgok store said.

Another worker said they were out of work for a month. “I was laid off because I was under a contractor. But yesterday Homeplus suddenly hired me as its headquarters’ employee because they needed someone to do the cleaning, so I started working again.”

Although Homeplus has managed to reopen its stores, the outlook for its rehabilitation remains bleak.

Homeplus owes an estimated 200 billion won to food suppliers, including small and midsize businesses — roughly the same as its emergency funding. That has left some food suppliers reluctant to resume deliveries despite the reopening. Homeplus also faces sizable utility, logistics and store operating costs.

The Seoul Bankruptcy Court has set Sept. 4 as the deadline for approval of Homeplus’ rehabilitation plan. Homeplus has until then to prove it can keep operating.

A campaign to rally support for Homeplus is also underway.

“Starting tonight, I ask people to fill their shopping baskets at Homeplus until the retailer is back on its feet,” Democratic Party (DP) Rep. Min Byoung-dug, who chairs the party’s committee to protect laborers, said at a press event held at the National Assembly in western Seoul on Friday.

Fellow DP Reps. Lee Hoon-ki and Kim Nam-geun, who also joined the press event, called on private equity firm MBK Partners, Homeplus’ controlling shareholder, to inject additional funds into the company.

“What goes into each shopping basket is not simply merchandise, but a family’s livelihood,” workers from the Homeplus branch of the Korean Mart Labor Union said.

BY KANG BO-HYUN [lee.soojung1@joongang.co.kr]