Homeplus, Fourth Asset Securitization Store is Daegu Branch

Operating for 1 Year... Closing in December Next Year
Reassigned to Nearby Store After Interview

Homeplus Daegu Branch

[Asia Economy Reporter Cha Min-young] Homeplus has confirmed asset securitization for its Daegu store. This is the fourth asset securitization following the announcements for Ansan store and Daejeon Tanbang store in July, and Daejeon Dunsan store last month.

Homeplus announced on the 13th that it has signed an asset securitization contract for the Daegu store. However, the contracting party and contract amount are not disclosed due to confidentiality clauses in the contract.

In June, Homeplus stated plans to carry out asset securitization targeting around three stores to secure liquidity for stable business operations and future prospects amid an uncertain business environment caused by the offline retail industry's recession and the impact of COVID-19, which led to a sharp decline in sales.

A Homeplus official said, “Although it is regrettable for both the Daegu store employees and the company, given the store’s long history, this move enhances the visibility of plans to secure liquidity for stable business operations and future business. Employment of Daegu store employees is naturally guaranteed separately from the asset securitization, and we plan to have sufficient negotiation periods with the mall tenants within the store to sincerely discuss compensation procedures.”

Homeplus will maintain operations for one year to ensure shopping convenience for customers and to help Daegu store employees and mall tenants adapt stably to the changes. The planned closure date is December 2021.

Homeplus explained that Daegu store employees can work at the current store for one year. Even after business closure, prior interviews will be conducted before any job transfers. The company plans to minimize employee inconvenience by considering the status of workplaces where transfers will occur and employees’ commuting distances. Accordingly, transfers to nearby stores, as well as moves to business sectors showing remarkable growth aligned with distribution trends such as online business and the corporate supermarket (SSM) ‘Homeplus Express,’ are also under consideration. No workforce restructuring is being considered at all.

A Homeplus official stated, “The labor union’s claim that there is no capacity to assign personnel to nearby stores and that restructuring is inevitable is not true. Among store employees, those in their 50s make up a significant portion. We currently have steady retirements at the mandatory retirement age (60 years old), and a considerable number of employees will reach retirement age within the next one to two years, so we expect to consider new hiring.”

This content was produced with the assistance of AI translation services.