A Hail (SLED3; SLED4) presented, at the beginning of October, a request for self-bankruptcy before the 2nd Bankruptcy and Judicial Reorganization Court of the Central Forum, of the District of the Capital of the State of São Paulo. We reported this fact as soon as it was released, as you can see in this article.
A company also disclosed in a relevant market statement that RSM no longer acts as an independent audit service provider for Saraiva.
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At the end of the previous month, the bookstore laid off its employees and closed all operations in its physical stores. Following the same line of judicial recovery, it started to operate exclusively through its e-commerce.
(Image: disclosure)
Saraiva operated physical stores throughout Brazil and was once the largest bookstore chain in the country, with around 100 stores. A debt of R$675 million would have been the cause of the bankruptcy.
In 2018, Saraiva made the decision to close 20 of its stores in a single day, in October. Following this movement, the chain had a total of 84 units and maintained its e-commerce.
One month after this reduction, the company filed for judicial recovery, revealing an accumulated debt of R$674 million at the time. In the years that followed, without being able to recover, Saraiva was forced to close more units.
Still in September, Jorge Saraiva Neto resigned from his positions as president, director of investor relations and member of Saraiva's board of directors. Furthermore, Oscar Pessoa Filho also left his position as vice-president of the company.
Saraiva's dramatic decline is a sad example of the consequences of the crisis that the publishing market has faced in recent years.
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