Home Plus suspends operations amid liquidation concerns

SEOUL, July 13 (UPI) -- South Korea's discount chain Home Plus said Monday it halted its operations due to a lack of working capital, raising concerns about possible liquidation.

The potential collapse of the Seoul-based retailer is feared to result in tens of thousands of job losses, including among its employees and workers at suppliers. After closing 37 outlets in May, Home Plus had 67 stores remaining across the country.

"Our operating funds have been completely exhausted, leaving us unable to pay suppliers or even cover essential expenses like utility costs necessary to keep our stores running," Home Plus said in a statement.

"As a result, we can no longer operate our stores normally. To ensure security and safety, both our head office and hypermarket stores will be temporarily closed until further notice," it added.

MBK Partners, one of Asia's top private equity firms, took over Home Plus in 2015. After years of mounting losses, however, the company entered court-led rehabilitation in early 2025.

After more than a year of unsuccessful efforts to find a buyer, the court terminated the proceedings early this month. Home Plus has asked Meritz Financial Group, one of its largest creditors, to provide funding required to support an appeal.

If Home Plus fails to secure $130 million during the grace period, which expires July 20, it is expected to enter bankruptcy proceedings.

"We have once again asked Meritz to provide a $130 million working capital loan, but it has yet to respond positively to the request," Home Plus said.

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This story was originally published July 13, 2026 at 11:44 AM.