'Please slow down': Homeplus stores are bustling again after monthlong shutdown, but uncertainty lingers

Homeplus reopened its doors Thursday, exactly one month after suspending operations at 67 stores nationwide on July 13 due to a shortage of operating funds.

Residents living near Homeplus stores lined up to enter as soon as doors opened at 10 a.m. following news that operations would resume.

In fact, Homeplus branches in Gangseo, Hapjeong in western Seoul and Geumcheon in southern Seoul were packed with shoppers Thursday.

“The nearby Gayang branch closed last year, and when this store suspended operations too, it became difficult to shop for groceries,” said Choo Tae-hwan, a shopper at the Homeplus Gangseo branch in western Seoul.

“Homeplus is the only large supermarket around here, so I hope it stays open for local residents.”

At the Geumcheon branch, dozens of customers streamed in as soon as the doors opened. Employees could be heard repeatedly calling out, “Please slow down.”

At the meat section, where discounted items were on sale, some shoppers loaded five or six packs of meat into their carts, while chicken at the deli counter sold out within 10 minutes.

“I came as soon as the store opened and managed to get two packs of beef,” said Kim Moo-yeol, who lives in Doksan-dong, Geumcheon District, in southern Seoul.

While customers returned in large numbers, empty shelves throughout the stores showed that operations had yet to fully return to normal.

At the Gangseo branch, numerous shelves had one or two rows left empty. In the condiment section, only a single line of containers of gochujang was displayed along the front row where they were most visible.

The store had no wine left in stock, while the refrigerator normally stocked with makgeolli (Korean rice wine) was empty and its lights were turned off.

The Hapjeong branch had reduced its retail space by half, installing a temporary partition and rearranging the store around products that were available for sale. As a result, plastic containers were displayed in an area labeled for instant rice brand Hetbahn, while toys occupied shelves labeled for noodles.

“I came here with high expectations, but I’m really disappointed because there’s hardly anything to buy,” said a Hapjeong-dong resident surnamed Lee.

Employees also remained worried about their future.

“A lot of people I worked with left during restructuring over the past month, and there are no guarantees for those of us who remain either,” one Homeplus employee said.

Another employee, who said they had been hastily reassigned from the online services division, described confusion at the stores.

“We’re so short-staffed that I’ve been sent to work in the fruit section,” the employee said.

Merchants operating businesses inside Homeplus stores are also growing increasingly concerned.

“Homeplus hasn’t paid maintenance fees since May, so the electricity and air conditioning aren’t working, and when something like a sewer pipe breaks, we have to somehow pay for repairs out of our own pockets,” said a merchant surnamed Lee who runs a business inside the Homeplus World Cup branch in Mapo District, western Seoul.

Politicians also joined efforts to support the retailer Thursday.

The Democratic Party, Rebuilding Korea Party, Jinbo Party, Social Democratic Party and a joint committee formed to address the Homeplus crisis held a press conference at the Gangseo branch under the slogan “Let’s Save Our Neighborhood Homeplus” before shopping together at the store.

Homeplus, however, continues to face an uncertain future.

The retailer was able to resume operations after the Seoul Bankruptcy Court approved 200 billion won ($140 million) in emergency operating funds provided by Meritz Financial Group, but Homeplus still owes food suppliers more than 200 billion won in unpaid settlements.

“It’s difficult to supply as much as we used to,” a source from the food industry said. “We’re only supplying goods worth the amount that has been paid in advance.”

Creditors, shareholders and other stakeholders are scheduled to vote on the company’s rehabilitation plan on Sept. 2.

Homeplus must demonstrate its ability to recover and secure the necessary approval from stakeholders before Sept. 4, the court’s deadline for approval of the rehabilitation plan.

BY KANG BO-HYUN, NOH YU-RIM [[email protected]]