Casas Bahia Shrinks to Survive, Cutting Nearly 30% of Its Stores

Casas Bahia generated R$7.4 billion in sales in the first quarter of 2026 but ended the period with a R$1 billion loss. This happened because the operation generated R$597 million before interest expenses, while financial expenses reached R$1.1 billion.

In simple terms, for every R$100 in sales, the operation generated R$8.10, while financial costs consumed R$15.80. In the end, the company lost R$14.30.

The company says its net debt fell 68% to R$1.2 billion. Part of that reduction, however, did not come from sales: debt was converted into shares, resulting in Mapa Capital taking an 89.6% stake in the company. When other obligations are included, such as consumer financing, supplier financing and receivables funds, the total still amounted to approximately R$4.4 billion.

Casas Bahia also reported generating R$852 million in cash. After paying R$662 million in interest and R$414 million in loans, however, its cash position ended R$224 million lower.

Part of the company’s cash was also preserved because it took longer to pay suppliers. The average payment period rose from 131 to 149 days, which artificially boosts reported cash levels because the money remains on the company’s balance sheet for longer.

The closure of 298 stores is far greater than the reduction of 26 units recorded over the previous 12 months. The measure may lower expenses, but it initially creates severance costs, penalties and asset write-downs.

There is also a commercial risk: physical stores accounted for 67.6% of gross revenue in 2025 and support in-store pickup, exchanges, consumer financing and logistics. While the company’s own digital channel grew 27.4% in 1Q26, its marketplace declined 3%.

The effects of the restructuring are also visible in the occupancy of logistics properties. Data from SiiLA Market Analytics shows that the group had already been reducing or redistributing its space before the current store closure plan.

In 2025, approximately 32,000 square meters were vacated in Itajaí and Fortaleza, while the addition of 17,900 square meters in Pernambuco offset only part of those exits. The net result of the identified movements was a reduction of close to 14,000 square meters — a contraction that may be described as “optimization,” but remains a contraction nonetheless.

The group currently still occupies around 328,000 square meters. For a company under pressure to cut costs and close nearly 30% of its stores, that footprint stops being simply a warehousing network and starts looking like an extensive list of spaces that could potentially become vacant.

Fewer stores may mean less need for inventory replenishment, while digital growth may offset only part of that reduction. If additional areas are vacated, the impact could appear in vacancy rates and lease negotiations, particularly because the company’s operations are concentrated in large spaces in Rio de Janeiro, Pernambuco and Extrema.

Late on Sunday night (16), the company filed for judicial reorganization with São Paulo’s 2nd Bankruptcy and Judicial Reorganization Court, reporting R$17.3 billion in debt, including unsecured claims and labor-related liabilities.

The company emphasized that it will continue operating throughout the process, with no significant disruptions to services or ongoing operations.