Pernambucanas in crisis: retailer may stop paying rent for two months

Measure could preserve around R$60 million in cash, twice the retailer’s liquidity at the end of March; retail operation posted a R$206 million loss in 1Q26

Marcelo Pimentel and Ernane Abrahão, CEO and CFO of Pernambucanas

By: SiiLA News

08/31/2026

The retail crisis may be claiming another victim: Pernambucanas. Founded in 1908 in Recife, the retailer is facing problems that could lead to further developments. According to information obtained by REsource, Pernambucanas is expected to suspend rent payments on several properties for around two months.

To understand what has been happening, some background is necessary. In July, the retailer reshuffled its leadership team. Marcelo Pimentel, former CEO of GPA and Lojas Marisa, took over as CEO; Ernane Abrahão, former CFO of Grupo Avenida, became CFO; and Carlos Henrique Bandeira de Mello, known as Caíque, became chairman of the board. The changes are part of an effort to put the company back on track.

There are three key points of concern in the Pernambucanas case: (1) the retail operation posted a net loss of R$410 million in 2025 and R$206 million in the first quarter of 2026; (2) retail EBITDA after rent was negative by R$87 million in 1Q26, while the equivalent consolidated result was negative by R$137 million; and (3) consolidated shareholders’ equity fell 62% between December 2024 and March 2026, from R$1.11 billion to R$421 million.

Rent

According to the latest reports, rent expenses totaled R$337 million in 2025 and R$91 million in 1Q26, equivalent to approximately R$30 million per month.

According to information obtained by REsource, Pernambucanas’ nonpayment is expected to last around two months. Therefore, suspending or postponing two months of rent payments would be an immediate way to preserve approximately R$60 million in cash.

The company had approximately 472 stores in March, with 24% located in shopping centers and 76% in street retail properties. According to SiiLA Market Analytics data, in the logistics segment, the company leases 99,400 sqm at Prologis Castelo 46 and pays approximately R$3.8 million in rent, considering IPCA-linked rent adjustments.

Crisis overview

In August, Pernambucanas said it was negotiating amounts already overdue or about to become due with suppliers. According to information disclosed by the company, the proposal is to pay 30% of the outstanding balance and divide the remaining 70% into five installments.

In the audit report published in March 2026, covering the company’s 2025 financial statements, PwC, Pernambucanas’ independent auditor, warned of a “material uncertainty related to going concern.” The auditors highlighted issues including recurring losses and negative working capital.

According to the documents, in March, the company’s retail net debt fell to R$112 million, representing only 0.3 times EBITDA. In its 2025 management report, however, the company itself reported R$543 million in broader financial obligations: R$160 million in bank debt; R$125 million in convertible debentures; and R$258 million in obligations outside its main debt indicator, including supplier financing arrangements, ICMS tax installment plans and extended supplier payment terms.

In addition, the company had R$1.44 billion in lease liabilities and nearly R$2.8 billion owed to suppliers on a consolidated basis in 2025.

Future

After Casas Bahia and Marabraz, Pernambucanas may be next. Instead of renaming subway stations, it may be time for the company to decide which train it intends to board.

In any case, Marcelo Pimentel and Ernane Abrahão have a long and difficult road ahead.

Contacted by REsource, Pernambucanas denied that it plans to postpone any rent payments.

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