"Just give us the money back. Why make this so complicated?"
Around 3 p.m. Monday, students lined up outside the cultural center on the fourth floor of the Homeplus branch in Gangseo-gu, Seoul, seeking refunds for canceled classes. Stacks of course cancellation request forms sat piled on the information desk as staff guided students through the refund process.
Homeplus suspended operations at all of its stores nationwide that day. The company ran out of operating funds after the Seoul Bankruptcy Court ruled on July 3 to terminate its rehabilitation proceedings, leaving it unable to pay suppliers or cover store operating costs.
The cultural center was no exception. Classes for the summer semester had barely begun before they were halted, sending students rushing to claim refunds. Refunds were processed by fully canceling the original payment and recharging only for the sessions already attended. Material fees paid to instructors were not refunded, with staff saying they had received no separate instructions on the matter.
Kim Min-a, 40, who had enrolled in three courses including a writing class, said she registered because she was told the program would run through August. "Then out of nowhere, a text came Tuesday morning saying classes were suspended," she said. "I heard they had no operating funds, so I rushed here worried I wouldn't get my money back." A woman surnamed A, who had signed her child up for ballet, said she turned to the cultural center because arts and physical education programs for preschoolers are hard to find. "It's a shame it shut down so suddenly," she said.
Students repeatedly asked staff to confirm that their classes had indeed been canceled. A classroom where a sensory-play program for infants had been scheduled sat dark and empty. Students from a painting class stopped by to collect works they had not yet finished.
The supermarket floor two levels below was eerily quiet. Shopping carts had been stacked across the entrance, and advertising videos played on monitors inside the darkened store. A staff member tidying up said most employees had already gone home and that only cleanup work remained..
Shoppers who arrived at the store were visibly caught off guard. Many had come specifically for a 50 percent discount event held over the previous weekend, only to be turned away at the entrance. The confusion was compounded by the absence of any closure notice at the parking lot entrance or on online maps. Yoo Mi-suk, 58, said she had come to buy a pot after hearing about the half-price sale. "I was shocked to find it closed," she said. "I regret not coming a day earlier." Moon Seo-young, 47, sighed and said, "All the supermarkets near me are disappearing — it's worrying."
The closure caught employees off guard as well. A store-wide shutdown notice went out roughly 10 minutes before opening time. Kim, the owner of a store-within-a-store, said the announcement came during the morning briefing. "They suddenly announced there would be no business on Tuesday, and all the staff just went home," he said.
The Homeplus branch of the Mart Industry Workers' Union criticized the abrupt closure notice. At a press conference in front of Cheong Wa Dae on Monday, the union said MBK Partners and Homeplus management had repeatedly pledged to keep operating normally. "But behind the scenes, they ran a storewide discount event and then blindsided the union and workers with a sudden closure of all stores, without any explanation," the union said.
Tenant businesses inside the stores also face unavoidable losses. Homeplus said tenants who wished to continue operating could do so, but with customer traffic cut off, staying open is not a viable option for most. Employees, too, could not hide their anxiety that a prolonged shutdown could cost them their jobs.
The Seoul Bankruptcy Court ruled on July 3 to terminate Homeplus's rehabilitation proceedings. If the company fails to secure 200 billion won ($133 million) in financing before the appeal deadline of Monday, July 20, the court's decision will be finalized. Jung Heung-jun, a professor of business administration at Seoul National University of Science and Technology, said the closures signal that Homeplus has entered bankruptcy proceedings. "This is the moment to reconsider the private equity fund management model that focuses only on short-term profit," he said.
The union is scheduled to meet with MBK Vice Chairman Kim Gwang-il and other Homeplus executives at the company's headquarters Tuesday afternoon. Starting Thursday, union members plan to hold nightly candlelight vigils in front of Cheong Wa Dae..
siuu@heraldcorp.com
