Seoul: South Korea's major discount store chain Homeplus Co. announced plans to close 15 stores by December and reduce operating hours at others as part of efforts to address its financial difficulties.

According to Yonhap News Agency, the company will shut down five locations in mid-November and an additional ten in December. Additionally, 68 stores that previously operated until 11 p.m. or midnight will now close at 10 p.m.

The decision comes as the 15 stores targeted for closure have collectively reported an annual loss of 80 billion won (US$57.4 million), with associated rents totaling 70 billion won. Homeplus has been in a court-led rehabilitation program since March after two local credit rating agencies downgraded its corporate bonds due to its weak financial condition. The company is expected to submit its rehabilitation plan to the Seoul Bankruptcy Court by next Wednesday.

Unionized workers of Homeplus staged a protest near the presidential office in central Seoul, urging the government to take a more active role in stabilizing the supermarket chain. The union criticized the merger and acquisition efforts led by MBK Partners, which failed to secure new potential buyers as recently as last month. They expressed concerns that the rehabilitation program could result in corporate liquidation, adversely affecting the regional economy.

MBK Partners acquired Homeplus in 2015 from British retailer Tesco Plc for 7.2 trillion won (US$5.16 billion).