The primary creditor of South Korean discount retailer Homeplus Co. has agreed to extend an additional 200 billion won ($134 million) in funding to the financially distressed chain.
The decision, reached on Thursday, provides a critical stopgap for the company, which has been grappling with severe cash-flow constraints that recently forced it to temporarily shutter some of its stores.
The injection of capital is designed to stabilize Homeplus's operations and prevent an immediate collapse.
For investors and creditors, the move signals a coordinated effort to keep the retailer afloat while a longer-term resolution is sought.
The funding comes at a time when the retail sector is facing headwinds, and Homeplus's liquidity crisis has raised concerns about the sustainability of its business model.
Homeplus, a major player in the South Korean grocery market, has been under pressure to restructure its debt and operations.