The support of partner banks for the company supports the recovery. According to the disclosure, institutions hold 54.5% of the Casas Bahia Group’s debts. As a result, the company estimates that the announcement of the extrajudicial request “is pre-approved.”
The company states that the plan aims to improve the retailer’s cash flow. According to the CEO of Grupo Casas Bahia, Renato Franklin, the recovery does not involve operational debts and has no impact on customers, suppliers and employees.
This agreement is substantially material. The improvement in our cash flow is R$4.3 billion over the next four years. In 2024 alone, it will bring a gain of more than R$1.5 billion.
Renato Franklin, CEO of the Casas Bahia Group
There is also a grace period determined by the process. According to the extrajudicial recovery project, the company will have 24 months (two years) to start paying interest on the debt obtained by Casas Bahia. There are still another 30 months for the main disbursement. The changes should result in savings estimated at R$60 million per year.
We were able to move forward in this negotiation instead of making specific agreements, which solve the short term and, soon after, require the discussion of new agreements.
Renato Franklin, CEO of the Casas Bahia Group
The situation represents a new step in the company’s transformation process. The plan presented in August 2023 resulted in the unification of Via (formerly Ponto Frio) with Casas Bahia. The group’s new format included the reduction of stocks, the dismissal of 8,600 employees, the closure of 55 stores and the relocation of distribution centers.
Tags: Understand situation led Casas Bahia extrajudicial recovery
