Fuel stations lead Brazil's retail sector in judicial recovery filings

Fuel stations in Brazil are experiencing a significantly higher rate of judicial recovery filings compared to the general retail sector. According to data from the RGF-BIZDOC Monitor, fuel stations represent 18.5% of the 986 retail companies currently in judicial recovery. The incidence rate for this sector is 3.61 per thousand active CNPJs, which is twenty-two times higher than the retail average of 0.16 per thousand.

This trend is attributed to narrow operating margins, heavy tax burdens, and a highly regulated environment. While the number of recovery processes is high, actual bankruptcies remain low. Of the 182 stations in judicial recovery, only 30 have declared bankruptcy. This is largely because the assets held by these businesses, such as environmental licenses and storage tanks, encourage creditors to negotiate debt rather than liquidate the operations.