Seoul: Private equity firm MBK Partners Ltd., which owns Homeplus Co., announced Sunday that its chief will use his personal assets to support suppliers of the major discount store chain affected by the court-led rehabilitation process. Earlier this month, Homeplus "preemptively" entered court-led rehabilitation proceedings after two local credit rating agencies downgraded the rating of its corporate bonds to A3- from A3, attributing the change to the retailer's lack of efforts to improve its financial health.
According to Yonhap News Agency, some companies have recently suspended supplying products to Homeplus due to concerns that the retailer may not pay for the delivered goods. This development has further exacerbated the challenges faced by Homeplus during its financial restructuring.
Homeplus has announced its commitment to resolving these issues and plans to submit its self-help plans to the court by June 3. The retailer aims to stabilize its operations and restore confidence among its suppliers and stakeholders through these strategic plans.