Homeplus Bankruptcy Crisis: Why the MBK Partners Acquisition Structure and Unpaid Debts are Key

Although Homeplus recently overcame a crisis by delaying its rehabilitation bankruptcy filing, serious signs of crisis are being detected in terms of management structure and cash flow. According to a video from the retail specialist channel 'God of Retail', Homeplus's current crisis goes beyond a simple decrease in sales; it is facing structural limitations due to the financial structure at the time of acquisition and the issue of unpaid supply payments.

Product Supply Disruptions Due to Store Reductions and Refusal to Supply

Homeplus recently adopted a strategy of compressing product sales by reopening 67 stores. Immediately after the reopening in August, sales for five days increased by 191% compared to the previous year, gaining temporary positive responses, but customers are once again leaving after the promotional events ended. This is because there are fundamental problems with the stores' product composition and supply system.

The video analyzed that the product shortage phenomenon in Homeplus stores is not simply due to the absence of promotional items, but due to a 'store hollowing out' phenomenon caused by major suppliers refusing to supply goods. Major suppliers are refusing new deliveries unless the previously unpaid amounts are settled, causing consumers to experience inconvenience as they cannot find necessary fresh foods or core products even when visiting the stores. In particular, as compressed operations continue—such as leaving some floors empty while reducing store floor area—evaluations are emerging that the scale has shrunk to the level of a large supermarket (SSM) rather than a large discount store.

MBK Partners' Acquisition Structure and the 790 Billion Won Unpaid Debt Issue

The acquisition method used by the major shareholder, MBK Partners, is being pointed out as one of the causes of Homeplus's deteriorating management. According to the video, MBK Partners chose an acquisition structure that minimized equity and utilized external borrowing at the time of acquisition. The massive interest burden generated in this process and the 'Sale and Leaseback' strategy, which involves selling assets and then leasing them back for use, have led to a massive annual rent burden, causing the deterioration of Homeplus's profitability.

The most urgent problem is the scale of the unpaid debts. It has been revealed that the total amount Homeplus has failed to settle reaches 790 billion won. Of this, approximately 500 billion won is the amount that must be paid to suppliers, and the remaining 289 billion won is the settlement amount for tenant businesses (banks, pharmacies, restaurants, etc.) located within the stores. Homeplus is planning to pay these amounts in installments over several years, but suppliers are repeatedly falling into a vicious cycle of avoiding deliveries due to anxiety that the non-payment could lead to default.

Ultimately, securing funds through asset sales is also uncertain. Considering the real estate recession and the low versatility of large discount store facilities, repaying debt through store sales is not easy. Experts believe that whether Homeplus can recover its product supply chain and induce continuous customer visits will be the key factor determining its future recovery.