Ri Happy seeks extrajudicial recovery for R$ 827.4 million debt

A court in São Paulo has approved the extrajudicial recovery process for the toy retailer Ri Happy and five other companies within its group. The group, controlled by BluSun Capital Partners, is seeking to renegotiate approximately R$ 827.4 million in unsecured debts.

Judge Tainá Maria Leonardo de Oliveira granted the group 90 days to secure support from a majority of its creditors. Additionally, the court suspended all legal actions and debt executions related to the plan for 180 days to prevent individual collections from undermining the collective negotiation process.

The group includes PBKids Brinquedos, Partout Administração de Franquias e Bens, News Toys Comércio Distribuição e Importação, Brincar Marcas e Participações, and DRH Casa de Festa. The companies attributed their financial difficulties to the pandemic, rising interest rates, declining retail sales, and failed bank debt renegotiations in 2023.