Casas Bahia has liquidated inventory held as collateral and cut thousands of jobs while awaiting a decision on its judicial reorganization.
The retail chain Casas Bahia has undergone drastic changes to its operational structure in recent months. Recent data reveals a significant contraction in the volume of goods offered as collateral to creditors and deep staff cuts, reflecting the critical moment the company is facing in the national market.
The information was detailed in a technical report prepared by ACFB Administração Judicial, a team appointed by the courts to monitor the company’s financial health. The document indicates that the company is seeking to adapt to a new financial reality while awaiting final approval for its judicial reorganization proceedings.
Reduction in collateral and impact on staff
Between April and August, the retailer’s fiduciary inventory plummeted by 40.5%. This means the volume of products pledged as collateral to creditors dropped from R$ 3.18 billion to R$ 1.89 billion. At the same time, the chain reduced its workforce by laying off 4,647 employees during the same period.
Despite the significant reduction in security assets, commercial operations have remained largely active. The judicial audit found that 735 out of 744 physical stores remain open, as do 25 of the brand’s 29 distribution centers, alongside normalized operations for its e-commerce platform and the Bartira factory.
Even in a scenario where creditors were to remove these products, there would be no immediate cessation of operations, though the volume available for sale would decrease.
Restructuring and the network’s next steps
The Casas Bahia restructuring process also included the closure of 298 commercial units, according to the audit report. Currently, the company manages a monthly expense of approximately R$ 66 million related to the rent of 765 properties, while facing eviction orders in specific locations such as Itaúna (MG) and Sarandi (PR).
The future of the company will depend on the next legal developments related to its financial recovery request. Industry analysts are closely monitoring whether cost optimization and structural downsizing will be sufficient to ensure the long-term survival of the traditional brand in the competitive Brazilian market.
