Homeplus "Considering Express Sale on the Condition of Employment Stability"

"Franchise Owners' Contracts Will Also Be Guaranteed"

Homeplus has initiated the sale process of its corporate supermarket (SSM) business division, Homeplus Express, stating that the sale will be considered on the condition of job security for employees and contract guarantees for franchise owners.

On the 4th, Homeplus released a statement saying, "The sale of the Homeplus Express business division will be reviewed only on the premise of ensuring job security for employees under any circumstances."

Homeplus Express Siheung Baegot Branch.
[Photo by Homeplus]

Homeplus explained, "Many distribution companies have shown interest in the Express business division, and we are currently reviewing the possibility and effectiveness of a sale as one of several strategic options for sustainable growth," but added, "Nothing has been concretely decided yet." They further emphasized, "Even if the sale proceeds in the future, job security will be a prerequisite so that employees who have contributed to the company's growth and development can work with peace of mind."

They also stated that contracts for stores operated under franchise agreements will be guaranteed. Homeplus said, "Contracts with current franchise owners will be guaranteed without change," and explained, "If there are any matters to report regarding the sale of the Homeplus Express business division, we will share them not only with employees but also with franchise owners, as we have done so far."

Homeplus also explained that the funds secured through the sale of Homeplus Express will be used for business expansion and financial improvement. Homeplus stated, "With the secured funds, we will expand the conversion to the already growth-verified 'Homeplus Mega Food Market' and further strengthen online delivery infrastructure and services," adding, "Various positive effects are expected, such as improved performance and financial structure through debt repayment."

According to the distribution industry, MBK Partners, the largest shareholder of Homeplus, recently selected Morgan Stanley as the lead manager for the sale and has started the sale process of Homeplus Express. Morgan Stanley is reportedly expected to approach about 10 potential buyers, including domestic and international distribution companies and e-commerce platforms, within this month.

Homeplus Express is considered one of the four major SSMs in Korea, alongside large corporate affiliates such as GS The Fresh, E-Mart Everyday, and Lotte Super. Homeplus Express recorded sales of 1.2 trillion KRW last year, with an EBITDA margin of 8%. Homeplus Express operates 413 stores nationwide, with 235 of them concentrated in Seoul and the metropolitan area.

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