▲ This undated file photo shows a Homeplus store. (Yonhap)

(LEAD) court-Homeplus

(LEAD) Court ends rehabilitation process for troubled retailer Homeplus

(ATTN: UPDATES throughout with details; RECASTS lead)

SEOUL, July 3 (Yonhap) -- A court decided Friday to terminate rehabilitation proceedings for troubled discount store chain Homeplus Co., pushing the company closer to shuttering its doors as it struggles to find a buyer.

The Seoul Bankruptcy Court rejected Homeplus' revised rehabilitation plan submitted earlier this week, noting the company failed to come up with the necessary funds of at least 200 billion won (US$130 million) to carry out the plan.

Homeplus can appeal the decision within 14 day. If it does not do so, the court decision will be finalized.

The retailer, wholly owned by private equity firm MBK Partners, has become financially strapped due to a slump in the discount store industry and entered court-led rehabilitation proceedings in March last year.

Homeplus had submitted an initial rehabilitation plan in December before handing its revised plan to the court on Tuesday.

"In order to carry out the rehabilitation plan in the current situation, at least about 200 billion won is needed, which has yet to be secured," the court said. "As there is no possibility of the plan being carried out ... the rehabilitation proceedings have been terminated."

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