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[BUSINESS] · Brazil · 12 sources

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Casas Bahia and Marabraz file for judicial recovery amid debt crisis

The Brazilian retail giants Casas Bahia and Marabraz have filed for judicial recovery in August 2026. The move comes as both companies face severe financial distress driven by high interest rates, specifically the Selic rate at 14% per year, and a significant decline in consumer purchasing power.

Casas Bahia reported a loss exceeding R$ 10 billion in the second quarter of 2026 and faces total debts estimated at approximately R$ 17.3 billion. As part of its restructuring plan, the company has closed 298 physical stores—roughly 28.7% of its network—and dismissed approximately 1,900 employees. Major creditors include Banco Digio (part of the Bradesco Group), which is the largest individual creditor with R$ 3.28 billion owed, as well as Banco do Brasil.

Marabraz has also entered judicial recovery to reorganize approximately R$ 140 million in debt. The company is struggling with similar macroeconomic pressures, including restricted access to credit and internal corporate disputes regarding its real estate holdings. The crisis in the retail sector is exacerbated by high household debt in Brazil, which reached a record 82% in July 2026, and increasing competition from digital platforms like Amazon and Mercado Livre.

Entities

Banco Digio · Banco do Brasil · Bradesco · Casas Bahia · Comissão de Valores Mobiliários · Grupo Casas Bahia · Marabraz

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