Grupo Casas Bahia faces labor injunction and new judicial recovery

The Regional Labor Court of the 10th Region has granted an injunction protecting workers of Grupo Casas Bahia and Ponto Frio following a series of mass layoffs. The decision, prompted by a request from the National Confederation of Commerce Workers (CNTC), aims to reinstate employment ties and preserve health plans and social benefits for affected employees.

The injunction follows the closure of 298 physical stores and the dismissal of approximately 1,900 workers without prior union intervention. The court has also prohibited new collective dismissals without union involvement and mandated compulsory dialogue between the company and labor representatives.

This legal intervention occurs as Grupo Casas Bahia faces significant financial instability. The company has entered a new judicial recovery process, seeking to reorganize billions in debt due to high interest rates, credit restrictions, and deteriorating financial conditions. This follows a previous extrajudicial recovery plan approved in 2024, raising questions regarding the long-term economic viability of the company's business model amidst the broader Brazilian retail crisis.