Marabraz files for judicial recovery to renegotiate debt of R$140 million

Marabraz store on Rua Chiquinha de Mattos in Taubaté Reproduction/ Street View The furniture and household appliances chain Marabraz filed a request for judicial recovery at the 3rd Bankruptcy and Judicial Recovery Court of São Paulo. The company is seeking to reorganize its finances and renegotiate around R$140 million in debt, according to confirmation from the company to g1. The order involves five companies in the group: Comercial de Móveis Jordanésia; S.V.C. Jaraguá Comercial; Commercial Móveis das Nações; Commercial Zena Móveis; Assembles Furniture Service Provider. Judicial recovery is a mechanism provided for in Brazilian legislation that allows companies in financial difficulties to renegotiate their debts under the supervision of the Court, with the aim of avoiding bankruptcy and keeping activities running. In a note sent to g1, Marabraz stated that the decision was motivated by a combination of factors that affected the company in recent years. "In view of the challenges faced by the retail sector and with the aim of preserving the continuity of its activities, Marabraz filed a request for judicial recovery. The measure represents a responsible decision to promote the restructuring of the operation, organize commitments and create conditions for business continuity", he stated. According to the company's advisors, the main factors that led to the request were the current challenging scenario in Brazilian retail, the rupture in the family structure that supported the group's operations and the difficulty in accessing credit. The company informed that the stores will continue to operate normally during the judicial recovery process. "The company remains in operation, with stores open, and reaffirms its commitment to transparency and compliance with the steps provided for in the legislation," said the company. "The process will have as priorities the preservation of jobs and the maintenance of relationships built throughout its history with customers, suppliers and partners." Founded by a family of Lebanese origin that began its commercial activities in the 1950s, Marabraz has become one of the main furniture and household appliance chains in the state of São Paulo. In the statement, the company stated that it intends to use judicial recovery to reorganize its financial structure and create conditions to resume growth. "Marabraz is committed to going through this period responsibly to preserve its operation and strengthen itself for a new cycle of growth, reinforcing the value of its brand to honor the legacy built with ethics, respect and trust", concluded the company.