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Embattled Homeplus seeks new owner as bankruptcy court grants M&A approval

Published: 20 Jun. 2025, 16:00

A Homeplus store in Incheon on May 27 [NEWS1]

Homeplus, which is currently under court receivership, is seeking a new owner.

The Seoul Bankruptcy Court granted permission Friday for a "prepackaged M&A," or merger and acquisition, before the court approves a rehabilitation plan for the company. Samil PwC was selected as the lead sales adviser.

“The company will seek an M&A prior to court approval of the rehabilitation plan to repay secured and unsecured creditors early and to sell the company under terms favorable to stakeholders such as creditors and employees,” the court said.

With the court’s green light, Homeplus will now work with a prospective buyer to draw up a new rehabilitation plan aimed at normalizing the company’s operations.

A day earlier, Homeplus held a briefing for creditors at its headquarters in Gangseo District, western Seoul, and announced its intention to apply for a prepackaged M&A. This followed Samil PwC’s conclusion in a due diligence report that the company’s liquidation value exceeds its going-concern value.

According to Samil PwC, Homeplus’ going-concern value was estimated at 2.5 trillion won ($1.83 billion), while its liquidation value was assessed at 3.7 trillion won — a difference of 1.2 trillion won in favor of liquidation. The higher liquidation value reflects the company’s substantial real estate holdings, with total assets valued at 6.8 trillion won.

Liquidation value refers to the total value of a company’s assets minus liabilities, while going-concern value represents the estimated total free cash flow the company can generate over the next 10 years.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY CHO MUN-GYU [[email protected]]