MBK Partners halts Home Plus store closures until new ownership ensures survival
- MBK Partners will not proceed with planned Home Plus store closures as negotiations for a sale are underway.
- The ruling Democratic Party is involved in discussions to support Home Plus amid its financial struggles.
- The future of Home Plus remains uncertain as it seeks a new owner to secure its operations.
In South Korea, the largest private equity firm, MBK Partners, has made a commitment to refrain from closing any Home Plus stores while the company searches for a new owner. This announcement was made on September 19, 2025, by the Democratic Party's floor leader, Kim Byung-kee, following discussions with MBK Chairman Michael Byungju Kim. The meeting marked an effort by ruling party lawmakers to support the struggling discount chain, which has been facing difficulties amid shifts in consumer behavior and the impacts of the COVID-19 pandemic. Home Plus has been in turmoil, experiencing consistent financial losses since 2021, leading to a court-sanctioned rehabilitation process. Amid these challenges, the company revealed plans to shut down 15 stores by March, a decision that was met with strong resistance from labor unions and local politicians. The Democratic Party expressed concern over the retailer's future, emphasizing the importance of securing a new majority shareholder to stabilize the business. Discussions about the sale are expected to continue until early November 2025. Afterward, the new owner will determine the fate of the stores, including any closures that might be necessary. The Democratic Party is actively urging MBK to take additional measures to facilitate the sale process. Furthermore, a party representative stressed that MBK's previous relinquishment of $1.8 billion in common equity was inadequate in making Home Plus appealing to potential investors. The suggestion to inject further capital into the company highlights the urgency of improving its market viability. Home Plus currently operates over 120 locations, and the political and labor dynamics surrounding its future could impact both the local economy and the lives of its employees. As the search for a new CEO intensifies, stakeholders are keenly watching how the situation unfolds, hoping that the chain can avoid further losses and regain its footing in an increasingly competitive retail environment.