Meritz to lend Homeplus $134M in bid to keep retailer alive
What's the deal? Meritz Financial GroupDealroom has a profile for this one. Try Dealroom → will extend $134 million (200 billion won) in fresh funding to South Korean discount chain HomeplusDealroom has a profile for this one. Try Dealroom →, its main creditor said Thursday. The debt facility comes with a full guarantee from MBK PartnersDealroom has a profile for this one. Try Dealroom →, the private equity firm that wholly owns the retailer.
Why now? Homeplus temporarily closed its outlets earlier this week amid a lack of operating capital. Days earlier, the Seoul Bankruptcy Court rejected the company's revised rehabilitation plan and moved to terminate the proceedings, citing its failure to raise the 200 billion won the plan required.
What's the endgame? With the new funding, Homeplus can appeal the court's decision to end its rehabilitation. Once the country's second-largest discount chain, it operated more than 140 stores at its peak.
How did it get here? The retailer entered court-led rehabilitation in March 2024 after a slump in the discount store sector. MBK Partners bought a 100% stake from Britain's TescoDealroom has a profile for this one. Try Dealroom → in 2015 for 7.2 trillion won.
What could go wrong? Efforts to secure funding have been hindered by a prolonged dispute over responsibility between MBK Partners and Homeplus' largest creditor. The court has already ordered the rehabilitation terminated, and the company is still searching for a buyer.
The signal: The rescue loan ranks among the largest debt deals in its market — sitting in the 92nd percentile of debt rounds tied to South Korea across an all-time sample of 115. It underscores how far Homeplus has fallen, and how much capital it now takes just to keep the doors open.
Read more: Naver News
Image credit: Generated with Gemini
