Livraria Cultura closes in Conjunto Nacional and says it is already looking for another place

Livraria Cultura closes in Conjunto Nacional and says it is already looking for another place
Livraria Cultura closes in Conjunto Nacional and says it is already looking for another place
-

The Livraria Cultura store in Conjunto Nacional, on Avenida Paulista, in São Paulo, closed permanently this Monday, the 1st. A notice in front of the unit informs customers that the bookstore continues to operate exclusively through the website.

Cultura was declared bankrupt in 2023. In August, it faced an eviction order, later reversed by the São Paulo Court of Justice. In February 2024, however, the Superior Court of Justice (STJ) denied an appeal by the bookstore and authorized the continuation of the eviction order.

Livraria Cultura, on Avenida Paulista, closed permanently this Monday, April 1st Photograph: Daniel Teixeira/Estadão

In a note sent to Estadão, Sérgio Herz, CEO and heir of the company, said that the bookstore is now looking for a new location to resume its activities.

“Over the past three years, we have been in constructive discussions with the landlord regarding the rental rate, seeking an agreement that would allow us to continue operating in this iconic location. Unfortunately, despite our mutual efforts, we were unable to reach a viable solution for both parties,” the statement said. Read below in full.

The store’s closure comes less than two weeks after the death of Pedro Herz, on March 19, at the age of 83. The bookseller, businessman and then owner of Livraria Cultura was responsible for transforming the company, founded by his mother, Eva Herz, into one of the biggest powers in the Brazilian literary market.

Judicial recovery and previous closures

Cultura, which already had 17 stores and 1,500 employees, filed for judicial recovery in 2018, with a debt of R$285.4 million with suppliers and banks. At the same time, Saraiva, then the largest bookstore chain in the country, followed the same path. The two companies suffered the consequences of the recession that the publishing market was entering and the effects of the macroeconomic crisis that shook the country between 2014 and 2017.

However, what led to the sad end of the companies (Saraiva was declared bankrupt and Cultura is still trying to survive), according to the editorial market itself, was ambition and management problems.

Pedro Herz, owner of Livraria Cultura and one of the largest booksellers in the country, died at the age of 83. Photograph: Sergio Castro/Estadão

Cultura was already facing difficulties when it decided to acquire the operations of the French network Fnac, which was leaving the country, and buy Estante Virtual. Late payments to publishers and debts increased. All units of the Herz family bookstore have been gradually closed since then, with only the Conjunto Nacional unit remaining.

In 2023, Cultura’s bankruptcy was declared twice, both times reversed: first in February, being suspended a few days later, and then in May. The company would not have fulfilled the commitments of the recovery plan signed in previous years, and there are still signs of fraud in the partners’ financial transactions.

The already empty shelves at Livraria Cultura Photograph: Daniel Teixeira/Estadão

The Conjunto Nacional unit was closed on June 26th last year, which generated great repercussions and commotion in the bookselling world, but it was reopened on July 6th. In August, the bookstore still faced an eviction order, reversed by the São Paulo Court of Justice. In February 2024, however, the Superior Court of Justice (STJ) denied an appeal by the bookstore and authorized the continuation of the eviction order. The store continued to operate until dawn, closed this Monday, 1st.

Announcement from Livraria Cultura

“Over the past three years, we have been in constructive discussions with the landlord regarding the rental rate, seeking an agreement that would allow us to continue operating in this iconic location.

Unfortunately, despite our mutual efforts, we were unable to reach a viable solution for both parties. The current market scenario, especially accentuated by changes in consumer behavior, consolidated during the pandemic, has made maintaining a large bookstore like ours in this location challenging.

As a result, and with a view to the sustainability of our operations, it was inevitable to make the difficult decision to look for a new space that better adapts to the current demands and realities of the editorial and retail market.

It is important to highlight that Livraria Cultura is committed to continuing to serve the community of readers in São Paulo and Brazil as a whole. We are working on new strategies and opportunities that we will soon announce, aiming to continue our mission of promoting culture and access to knowledge.”

Collaboration with Gabriela Caputo

The article is in Portuguese

Tags: Livraria Cultura closes Conjunto Nacional place

-

-

PREV Central Bank makes first intervention in the exchange rate during the new Lula government after the dollar reaches R$ 5.05
NEXT Elderly people are SUMMONED after a new pix qrcode and bill barcode scam; understand