Homeplus, a South Korean retailer under court-led restructuring, has approach potential buyers including Alibaba and Temu, as it seeks funding before a July 3 deadline for court approval of its rehabilitation plan, according to industry sources.

The company has put its remaining hypermarket and online businesses up for sale following its May agreement to sell supermarket unit Homeplus Express to NS Shopping for 120.6 billion won ($80 million) in cash.

Homeplus is Korea’s number two discount chain, with more than 120 hypermarkets and about 300 smaller stores nationwide. In the current sale process, PwC Korea sent sales materials to more than 10 domestic and overseas strategic investors.

Industry sources named Lotte, Shinsegae, CJ, Alibaba, and Temu as potential buyers. Homeplus said the Express sale should improve liquidity, but it does not expect the proceeds for about two months.

The retailer filed for court-led rehabilitation on March 4 after a late-February credit downgrade worsened a short-term funding squeeze. Critics have linked the company’s financial strain to debt taken on during MBK Partners’ 2015 acquisition.

Talks on a 100 billion won (US$66 million) bridge loan from creditor Meritz Financial Group have also stalled, increasing pressure on Homeplus to secure funding through asset sales.

🔗 Source: The Korea Herald