Homeplus stores have in effect entered emergency operating mode after outsourced workers handling facility management and cleaning walked off the job.
After a court ruled to terminate Homeplus's rehabilitation proceedings, the indirect-hire workers who had handled parking, cleaning and facility management lost their jobs, leaving direct employees to cover those duties, according to Yonhap News Agency on Thursday. Deliveries of fresh food and alcohol products have largely been cut off as well. Even goods already received cannot be sold due to unresolved payment issues.
"Products for which we collect sales commissions cannot be sold even when stock is on the shelves," a retail union official said. "Employees are stocking the shelves only with inventory that can actually be sold." Homeplus has been sustaining operations by selling stock of its private-label brand, Simplus.
Some observers say operations could be suspended as early as this weekend. Direct employees are managing facilities on a stopgap basis, but calls are growing for stores to halt operations over customer safety concerns. The mandatory hypermarket closure day this month falls on Sunday, July 12. Some have even raised the possibility that Saturday could be Homeplus's last effective day of business before that closure.
Homeplus must secure 200 billion won ($132 million) in operating funds by July 20 to file an immediate appeal with the court — failing that, it will have to enter bankruptcy proceedings. MBK Partners and Meritz have yet to narrow their differences over an additional 200 billion won in support. "There are those who say we should suspend operations and those who say we should keep going as long as we can," one industry official said. "No one knows when or how the situation will change."
andy@heraldcorp.com
