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[BUSINESS] · Brazil · 8 sources

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Casas Bahia files for judicial recovery after R$ 10.1 billion loss

Casas Bahia has filed for judicial recovery in São Paulo to restructure its debt following a massive R$ 10.1 billion net loss in the second quarter of 2026. The filing includes the holding company and several subsidiaries, such as Cnova, Bartira, and Casas Bahia Tecnologia.

The company's negative net equity has reached R$ 8.1 billion. To combat the financial deterioration, the retailer has closed 298 physical stores, representing approximately 29% of its network, and has laid off between 1,900 and 3,000 employees.

Management attributes the crisis to high interest rates, credit restrictions, and increased competition for household budgets from online betting (bets). Despite the losses, net revenue grew 1.6% to nearly R$ 7 billion during the quarter. The restructuring aims to prioritize profitability and cash generation while reorganizing the group's capital structure.

Entities

Bartira · Casas Bahia · Cnova · EY · São Paulo

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