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Homeplus. [Photo courtesy of Homeplus] |
[Alpha Biz= Kim Jisun] Homeplus, which entered court receivership six months ago, has reportedly received a notice from Korea Electric Power Corporation (KEPCO) regarding the suspension of electricity supply. The move underscores the retailer’s deepening liquidity crisis. Homeplus stated, however, that it would soon settle overdue payments to ensure uninterrupted store operations.
According to industry sources on the 29th, KEPCO recently sent notices to several Homeplus stores, citing prolonged non-payment of electricity bills and warning of potential power cuts. The unpaid charges reportedly cover the past two months. Should the arrears extend to three months, some outlets could be forced to close.
A Homeplus representative acknowledged the overdue bills at certain stores, adding that the issue affected most branches.
The development highlights the financial strain facing the retailer. Since entering court receivership in March, Homeplus has continued operations without major restructuring, relying instead on promotional events and discount campaigns.
However, persistent sales declines have further eroded liquidity, prompting the company to declare an emergency management regime. To cut costs, Homeplus began accepting applications for unpaid leave from all employees this month. The retailer has also shortened operating hours across its stores—from closing at 11 p.m. or midnight to 10 p.m.—to reduce expenses such as electricity.
Despite the warnings, the likelihood of store shutdowns appears low. Homeplus emphasized that it plans to make payments promptly to avoid disruptions in operations.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
