< Back to all clusters
[BUSINESS] · Brazil · 12 sources

started · updated

Casas Bahia obtains 180-day judicial protection to restructure R$ 17.3 billion debt

The São Paulo Court has granted a 180-day stay period to the Casas Bahia Group, protecting the retailer from debt executions while it attempts to restructure R$ 17.3 billion in liabilities. Judge Tainá Maria Leonardo de Oliveira issued the decision following reports of a “creditor run,” during which approximately R$ 9 million was blocked by judicial orders.

The ruling mandates that BTG Pactual restore the company's access to its checking accounts within 24 hours and requires payment processors Cielo, Getnet, and Redecard to release the company's receivables. The court also ordered a preliminary verification of the group's financial situation to be completed within 30 days.

The company's crisis is marked by significant operational shifts, including the closure of 298 stores and the dismissal of roughly 1,900 employees. The restructuring is complicated by an additional R$ 11 billion in extra-concursal debts owed to banks and suppliers. Major creditors include Whirlpool, which is owed approximately R$ 800.9 million, and technology firm Neogrid, which is owed over R$ 733,000.

Legal experts note that while the judicial recovery protects the company's financial restructuring, it does not suspend consumer rights under the Consumer Defense Code. Meanwhile, labor unions in Salvador have organized protests against the layoffs and store closures, alleging that some workers were dismissed without proper notice or payment of rights.

Entities

BTG Pactual · Casas Bahia · Guararapes Confecções S.A. · Lojas Renner S.A. · Neogrid · Salvador · Sindicato dos Comerciários de Salvador · Tainá Maria Leonardo de Oliveira · Whirlpool

Claims

What the coverage asserts, and how many sources carry each claim.