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Photo courtesy of Homeplus |
[Alpha Biz= Paul Lee] Homeplus, currently undergoing corporate rehabilitation proceedings, has announced plans to close 15 rental-based stores where rent renegotiations have failed and to offer voluntary unpaid leave to all headquarters employees.
According to the retail industry on August 13, the decision comes five months after the court approved Homeplus’s rehabilitation process on March 4, as mounting financial pressures prompted the company to implement aggressive self-rescue measures.
Out of its 68 leased stores, Homeplus will sequentially shut down the 15 locations where rent adjustment talks have stalled. The affected branches are Siheung, Gayang, Ilsan, Gyesan, Ansan Gojan, Suwon Woncheon, Hwaseong Dongtan, Cheonan Sinbang, Munhwa, Jeonju Wansan, Dongchon, Jangnim, Busan Gamman, Ulsan Buk-gu, and Ulsan Nam-gu.
Starting September 1, the company will also offer voluntary unpaid leave to all headquarters staff. Additionally, the partial salary reduction for executives, in effect since March, will be extended until the rehabilitation process is successfully completed.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
