SEOUL, June 20, 2025: A South Korean court approved on Friday grocery retailer Homeplus’s plan to sell the struggling company, in a move that the court said was aimed at providing funds to repay creditors and to ensure job security for employees at the company.
In March, MBK Partners, a private equity firm which owns the company, filed for a court-led restructuring of Homeplus, marking a setback to the firm’s marquee, $6.1 billion deal made more than a decade ago.
A spokesperson for MBK said on Friday it will support the successful sale of the company and plans to write off 2.5 trillion won ($1.83 billion) worth of common shares that it holds in the company as part of the sale.
The Seoul Bankruptcy Court approved a plan to appoint accounting firm Samil PricewaterhouseCoopers to manage the sale, which will take two of three months, the court said in a statement.
The court said the sale would help channel funds into the company and pay back debts to its creditors, while guaranteeing the job security of Homeplus employees and protecting partner firms by avoiding bankruptcy.
About the retail chain
HomePlus is a South Korean retail chain owned by Homeplus Co., Ltd., which was previously owned by Tesco, a British multinational retailer. HomePlus operates a chain of hypermarkets and supermarkets in South Korea, offering a wide range of products, including groceries, electronics, clothing, and home goods. The company was introduced to the South Korean market in 1999 and initially gained popularity for its large stores and diverse product offerings.
HomePlus failed to maintain its market share and profitability in South Korea due to various reasons. One major factor was the intense competition from local retailers, such as E-Mart and Lotte Mart, which offered similar products and services at competitive prices. Additionally, HomePlus struggled to adapt to changing consumer preferences and shopping habits in South Korea, particularly the rise of online shopping and convenience stores. In 2015, Homeplus Co., Ltd. was sold to MBK Partners, a private equity firm, and Homeplus’s new management has been working to revitalize the business and improve its competitiveness in the South Korean retail market
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