Casas Bahia expects 2027 to be worse than 2026, says president

Judicial recovery: understand the instrument used by the Casas Bahia Group Casas Bahia works with a more difficult economic scenario in 2027 than this year. According to the retailer's chief executive, Renato Franklin, the plan to close almost 300 stores was prepared considering a possible worsening of credit conditions for consumers. ?? Do you have any reporting suggestions? Send to g1 "We are not working with an improvement in the macro scenario. We consider that 2027 will be worse than 2026", said the executive during a conference with analysts, one day after the company became yet another company in the sector to file for judicial recovery. Franklin also stated that consumer debt is expected to remain high and that some measures that helped to sustain consumption this year could have negative impacts in the future, contributing to a worsening of credit conditions. According to the executive, Casas Bahia is increasingly restrictive in granting financing to consumers. The company announced, over the weekend, the request for judicial recovery and the closure of around 30% of its stores, equivalent to 298 units. Request for judicial recovery The Casas Bahia Group announced on Sunday night (16) that it filed a request for judicial recovery in the São Paulo Court. The measure includes the company itself and nine other companies in the group and aims to reorganize finances and renegotiate around R$17.3 billion in debt, in addition to ensuring the continuity of operations. ? Judicial recovery is a mechanism provided for in Brazilian legislation that allows companies with financial difficulties to renegotiate their debts under the supervision of the Court. The objective is to avoid bankruptcy, preserve jobs and allow the company to continue operating while it seeks to rebalance its accounts. According to the company, the decision was approved by the Board of Directors and the controlling shareholder. The request was filed with the Central Civil Court of São Paulo, which specializes in bankruptcies and judicial recoveries. The company informed that it intends to maintain the operation of physical stores, e-commerce and other sales channels. As the request was presented on an urgent basis, it will still need to be ratified by the shareholders at an Extraordinary General Meeting. Restructuring began in 2023 The request for judicial recovery is the outcome of a restructuring process that began around three years ago. According to the petition to which g1 had access, the company launched, in mid-2023, a Transformation Plan to reduce costs, increase operational efficiency and strengthen cash generation. In the first stage, 55 stores considered loss-making were closed by the end of that year, in addition to the reduction of approximately 8,600 jobs. In 2024, Casas Bahia also carried out an extrajudicial recovery, when it renegotiated around R$4.1 billion in debts with financial institutions. At the time, the company was betting that the renegotiation, combined with the expectation of a drop in interest rates and a resumption of consumption, would be enough to stabilize its accounts. However, according to the company, the economic scenario remained unfavorable. In August 2026, during the second phase of the Transformation Plan, the company promoted a new round of cuts, with the dismissal of around 3 thousand employees and the closure of almost 300 stores. According to the petition, the group currently employs more than 20,000 people. The company states that judicial recovery is necessary to preserve these jobs and ensure the continuity of operations. *With information from Reuters news agency. The Casas Bahia store in a shopping mall in São José dos Campos is closed. Sarah Brito/g1