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Casas Bahia retail restructuring in Brazil

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2026-08-15 14:03 UTC → 2026-08-15 18:11 UTC · added ~~removed~~

Casas Bahia is undergoing a major restructuring in Brazil to address a deepening financial crisis. The company is closing 298 stores, representing approximately 28.7% to 30% of its physical footprint. Between August 13 and 14, 2026, these closures were executed as part of a strategy to reduce operational expenses and improve cash flow. The restructuring involves significant workforce reductions. While initial estimates suggested between 1,900 and 2,000 layoffs, updated reports indicate the total number of terminated employees could reach 3,000. The dismissals were carried out in stages, with approximately 600 employees let go on Thursday and between 1,300 and 1,400 more on Friday. In response to these cuts, labor unions, including the Sindicato dos Empregados do Comércio de Osasco, are reportedly preparing collective legal action to challenge the manner in which the dismissals were conducted. The crisis follows substantial financial losses; in the first quarter of 2026, the retailer reported a net loss of R$ 1.064 billion, more than double the R$ 408 million loss recorded during the same period in 2025. The company also reported an accumulated loss of approximately R$ 3 billion in 2025. These difficulties are attributed to high interest rates, increased household debt, and pressured sales volumes. The group previously underwent extrajudicial recovery in 2024 to manage its debt obligations. To manage liquidity, Casas Bahia is negotiating longer payment terms with suppliers and adjusting marketplace arrangements. The company is pivoting toward digital sales, noting a 26% growth in online sales of its own products during the first quarter of 2026, even as physical store sales declined by 1.8%.

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