The Seoul Bankruptcy Court on Wednesday approved Homeplus's corporate rehabilitation plan, allowing the hypermarket chain to avoid bankruptcy and move toward exiting court receivership.

At a same-day meeting, secured creditors, unsecured creditors and shareholders voted in separate classes. Approval required support of more than 75 percent from secured creditors, 66.7 percent from unsecured creditors and 50 percent from shareholders.

"We declare the rehabilitation plan approved, with 100 percent approval among secured creditors, 75.90 percent among unsecured creditors and 100 percent among shareholders," the court said. "Given that more than two-thirds of creditors approved the plan, we find it meets the requirements for court approval."

The court said it will formally close the rehabilitation proceedings once repayments under the plan are fully carried out. If Homeplus fails to make the repayments as outlined, the court could revoke its authorization and then declare bankruptcy on its own authority.

With approval in hand, Homeplus plans to sell 19 of its 37 stores slated for closure to repay secured trust debt. The company also said it will continue raising funds, restructuring operations and considering potential mergers and acquisitions as part of its turnaround effort, underscoring that the plan still depends on execution after the vote.

The approval brings an end to a turbulent 18-month process.

Homeplus filed for court receivership in March 2025 after a credit downgrade triggered a funding crunch. In July, the court moved to terminate the proceedings when Homeplus failed to secure the required 200 billion won ($146 million) in funds, but reversed course after the company quickly raised the money and extended the voting deadline to Sept. 4.

Homeplus reopened on Aug. 13 and recorded 116.4 billion won ($86 million) in sales through Sunday.

"With a solid customer base, we expect a full recovery once normal supply resumes," a Homeplus official said.