MBK apologizes over Homeplus corporate rehabilitation

A Homeplus store in Seoul, Aug. 31 / Yonhap

 

MBK Partners issued an official apology over Homeplus’ corporate rehabilitation, Wednesday, expressing deep regret for “causing significant concern and disappointment to the public due to our shortcomings in judgment and management as a major shareholder over the past 10 years.”

MBK, a private equity firm, owns Homeplus, Korea’s second-largest supermarket chain.

“We sincerely regret that Homeplus has reached the critical stage of corporate rehabilitation, causing uncertainty and hardship for numerous employees, partner companies, creditors and customers,” the firm said in a written apology.

Homeplus filed for corporate rehabilitation with the Seoul Bankruptcy Court on March 4, following a credit rating downgrade. The move has drawn strong criticism toward MBK, with many accusing the firm of recklessly placing one of the country’s largest supermarket chains into corporate rehabilitation after acquiring it through a leveraged buyout.

Prosecutors have also been investigating allegations that Homeplus raised 600 billion won ($430 million) through short-term bonds while concealing its corporate rehabilitation plans from investors, while the Financial Supervisory Service has launched formal disciplinary proceedings against MBK as part of an expanded probe.