Exclusive: 736 Homeplus vendors shut down in 18 months since retailer entered receivership

At least 736 vendors operating inside Homeplus stores have shut down since the retailer entered court receivership in March last year.

Data submitted by Homeplus to the office of People Power Party lawmaker Seo Il-jun of the National Assembly's Political Affairs Committee show that 1,907 vendors holding Homeplus claims were on record at the end of March last year, shortly after receivership proceedings began. That number fell to 1,171 as of Sept. 2, when the Seoul Bankruptcy Court approved the retailer's rehabilitation plan — meaning 736 vendors had exited in the intervening period. The figure could climb further when accounting for vendors that terminated contracts or decided to close after Sept. 2.

Most of the departures followed a wave of store closures after receivership began. Homeplus decided to shut 19 leased locations nationwide by the end of last year, including its Jamsil branch. In June it announced the closure of an additional 37 stores. The chain's nationwide store count, which once stood at 142, has since plunged to 67.

Some vendors that chose to leave were still operating in the 67 stores that remain open. Homeplus, struggling to secure 200 billion won ($147 million) in debtor-in-possession financing, placed all 67 stores under temporary suspension between July and August, prompting some vendors to exit amid the operational disruption.

One franchise restaurant operator who had run a store at the Homeplus Sejong branch, which is still open, said the receivership process had prevented the supermarket from operating normally and that customer traffic dropped sharply during the temporary closure period. "The contract still had time left, but I ultimately decided to leave in early August because the business environment had changed and sales had fallen," the operator said.

The number of deposit refunds Homeplus has paid to departing vendors has also risen sharply. The cumulative refund count stood at 72 cases at the end of March last year; by Sept. 2 this year it had reached 2,004 cases — roughly 28 times higher. The total amount paid rose from 4.38 billion won to a cumulative 16.6 billion won.

The total value of claims held by Homeplus vendors stood at about 58.9 billion won as of Sept. 2. Of the 1,171 vendors, only 467, or 40 percent, agreed to an installment repayment arrangement put to a vote ahead of the Seoul Bankruptcy Court's review of the rehabilitation plan. The consenting vendors held claims worth 34.1 billion won — about 58 percent of total vendor claims. That consent rate was far below the 88 percent recorded among current and former Homeplus employees who had yet to receive wages or severance pay.

Analysts say the low consent rate reflects tensions between Homeplus headquarters and vendors over exit terms, as well as anxiety about unsettled payments. Vendors at the 67 remaining stores had previously pushed back against a company policy requiring them to restore their spaces to their original condition upon departure. Kim Byeong-guk, chairman of the Homeplus Tenant Owners' Association, voiced those concerns at a National Assembly forum last month. "The uncertainty over unpaid settlement amounts and deposit refunds is severe," he said. "Many store owners are holding on, anxious and unsure what to do, even as their daily sales amount to just 50,000 won or 10,000 won."

Lawmakers are also paying attention to the damage suffered by Homeplus vendors. Questions related to minimizing losses for those vendors are expected to come up Wednesday at the Ministry of SMEs and Startups' national audit before the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee. The committee had earlier voted to summon Kim Byung-joo, chairman of MBK Partners — Homeplus's majority shareholder — as a witness, but Kim submitted a notice of non-attendance.