People shop at a Homeplus store in Seoul, Feb. 28, in this photo provided by Homeplus. Yonhap
Homeplus, a discount store chain in Korea, said Tuesday it has filed for corporate rehabilitation with a Seoul court after its credit rating declined amid liquidity worries.
Homeplus filed for the court-led rehabilitation program with the Seoul Bankruptcy Court after its corporate credit rating plunged last month.
"We have decided to file for the rehabilitation program as there existed a possibility of a short-term liquidity crisis. This move is part of our preemptive efforts to avoid a liquidity crisis," a Homeplus official said.
The official argued the company's improved debt-to-equity ratio and increased sales on online and offline stores were not reflected in the credit rating evaluation last month.
Homeplus' outlets are in normal operation across the country despite its filing for the rehabilitation program. (Yonhap)
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