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 (US$167.7M) 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 US$167.7M 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 US$6.04B.
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
