Saraiva has bankruptcy declared by the São Paulo Court

The 2nd Bankruptcy and Judicial Recovery Court of the Capital decreed, last Friday (6), the bankruptcy from the bookstore chain Hail.

The request for bankruptcy was presented by the company itself as part of the judicial recovery process due to a debt of R$675 million.

The Saraiva bookstore chain had been in judicial recovery since 2018, after failing to reach agreements to renegotiate its debts with suppliers.

In the decision, judge Paulo Furtado de Oliveira Filho recognized that the judicial recovery plan was not complied with, ordering the suspension of actions and executions against the company. bankrupt company, in addition to requesting the presentation of the list of creditors.

Saraiva declares judicial bankruptcy

Saraiva filed a request for self-bankruptcy in court on October 4th. The company acknowledged that it does not have the capacity to pay its obligations, even after almost five years in the judicial recovery process.

In a statement released to the market, the company informed that the request was filed in the context of the judicial recovery, in the 2nd Court of Bankruptcy and Judicial Recoveries of the Central Court of the District of the Capital of state of São Paulo.

This decision came almost two weeks after the closure of all its physical stores and the dismissal of all employees who worked in the face-to-face operation, only maintaining its operation in the e-commerce.

Saraiva claimed that its business began to lose pace in 2014, mainly due to the stagnation of the economy in Brazil.

During that period, the company stated that several factors contributed to the negative impact on its revenue, including:

• Truck drivers' strike in May 2018;
• World Cup that affects consumer purchasing behavior
• Problems with shortages of technology and telecommunications products;
• Challenges in implementing a new internal management system.

These factors, combined with the adverse economic situation, contributed to the challenges faced by Saraiva in the years that followed.

The company sought judicial recovery as a measure to try to restructure its finances and overcome these difficulties, but, as mentioned, it ended up filing a self-bankruptcy request.

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