SEOUL, March 27 (AJP) - Homeplus, a major South Korean retail chain currently under court-managed restructuring, has announced a new weeklong sales event — its third in a month — as it seeks to stabilize operations and reassure customers amid mounting financial pressure.
Branded the "Founding Customer Appreciation Festival," the promotion will run from March 27 to April 2 and follows two earlier discount campaigns: the annual “Homerun is Back” sale from Feb. 28 to March 12 and the “Encore! Homerun is Back” event from March 13 to 26.
The new campaign includes discounts on fresh produce and other staples, such as a 5,000-won discount on domestically grown watermelons for customers using select credit cards, and green onions at half price for 2,490 won.
Industry observers view the sales push as a sign of the company’s urgent need for liquidity following its recent filing for court receivership, which effectively cut off access to short-term bank financing.
In documents submitted to the court, Homeplus projected a cash shortfall of 739.5 billion won (approximately $552 million) by the end of May.
However, the company estimated that under certain conditions — including suspending interest payments on financial debt, deferring repayment of operating loans, and delaying payments on pre-filing commercial obligations — it could turn that deficit into a surplus of 277.9 billion won.
Yet, Homeplus has already made substantial payments to vendors to secure continued product supply and announced plans to fully repay 460 billion won in asset-backed securities, a move seen as an effort to maintain public trust.
The company’s predicament deepened last week when Seoul Milk, the nation’s largest dairy supplier, halted deliveries to Homeplus for seven days over concerns about delayed payments. Dairy products are traditionally among the top five revenue-generating categories in supermarkets, making the interruption particularly costly.
reporter
Candice Kim
candicekim1121@ajupress.com
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