Homeplus to Close All 15 Stores with Failed Rent Negotiations by Year-End

Five Stores to Close by November 16, Remaining to Shut Down in December
All Stores to Shorten Operating Hours by Up to Two Hours to Cut Costs

Homeplus, which has entered corporate rehabilitation proceedings, has decided to close all 15 stores where rent adjustment negotiations have failed by the end of this year. To reduce operating expenses, the company will also shorten business hours at all stores by up to two hours compared to previous schedules.

A Homeplus store in downtown Seoul. Photo by Yonhap News

According to industry sources on September 3, Homeplus notified employees at the affected stores that it will cease operations at five of the 15 stores on November 16, with the remaining 10 stores scheduled to close in December.

The stores slated for closure in November are Suwon Woncheon, Daegu Dongchon, Busan Jangnim, Ulsan Buk-gu, and Incheon Gyeyang. The other 10 stores-Seoul Siheung, Gayang, Ilsan, Ansan Gojan, Hwaseong Dongtan, Cheonan Sinbang, Daejeon Munhwa, Jeonju Wansan, Busan Gamman, and Ulsan Nam-gu-will close in December.

Homeplus stated that these 15 stores incur an annual operating loss of 80 billion won, while the rent amounts to 70 billion won, making closures unavoidable for successful corporate rehabilitation. The company is currently seeking agreement from tenants operating within these stores to proceed with the closures, offering to waive interior restoration costs required to return the spaces to their previous state.

Additionally, Homeplus will move up closing time at all hypermarkets from the previous 11 p.m. or midnight to 10 p.m. A Homeplus representative explained, "We are shortening operating hours by excluding time slots with low customer traffic in order to reduce operating expenses."

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