Casas Bahia Seeks US$184M Rescue Loan in Court Recovery
Brazil · RETAIL
Key Facts
—DIP loan: R$1 billion debtor-in-possession financing, still under negotiation.
—Judicial recovery: court-supervised reorganization filed August 16, 2026.
—Debt: about R$17.3 billion, subject to the recovery plan.
—Samsung: R$937.6 million unsecured claim, the largest supplier creditor.
—Layoffs: about 3,000 staff cut or being cut from 30,117.
—Store closures: 298 units, nearly 29 percent of the network.
Casas Bahia filed for judicial recovery on August 16, 2026, and now negotiates R$1 billion in DIP financing with two major banks.
Casas Bahia is negotiating a R$1 billion debtor-in-possession loan with Banco do Brasil and Bradesco. The retailer filed for judicial recovery on August 16, 2026, covering about R$17.3 billion in debt.
Casas Bahia: Judicial recovery explained
Judicial recovery is Brazil’s court-supervised reorganization process, similar to Chapter 11 bankruptcy in the United States. It allows a company to keep operating while it negotiates new payment terms with creditors under judicial oversight.
Casas Bahia filed its petition on August 16, 2026, at the 2nd Bankruptcy Court of São Paulo. The filing covers the parent company and nine subsidiaries, including logistics and e-commerce units.
The R$1 billion DIP loan
DIP financing, or debtor-in-possession financing, is a loan to a company during reorganization. Creditors typically grant it priority status over other debts to encourage lenders to provide fresh cash.
Casas Bahia negotiates with Banco do Brasil and Bradesco for about R$1 billion, per ND Mais on August 17, 2026. The deal is not formalized, reported the outlet.
Valor Econômico reported the company began structuring the facility, possibly with investment funds. The loan would replenish inventory, which fell more than 20 percent in the quarter.
Job cuts and store closures
Casas Bahia has cut or is cutting about 3,000 employees out of 30,117, according to G1, citing the recovery petition. NeoFeed says over 3,000 were already dismissed.
The company closed 298 stores, nearly 29 percent of the 1,039 it held at March 31, 2026. The network now stands at about 740 units.
CEO Renato Franklin said the closures were a single wave, on the August 17 analyst call. “Optamos por fazer em uma onda única,” he said, per Exame.
The cuts are part of the Transformation Plan’s second phase, which began in 2023. Cumulatively, the group has cut about 11,600 jobs and closed about 355 stores.
The R$17.3 billion debt and creditors
The plan covers R$17.3 billion: R$16.4 billion unsecured (94.8%), R$754 million labor, R$154 million from micro/small firms. Petition lists debts to about 28,000 creditors.
Samsung Eletrônica da Amazônia tops the supplier list with R$937.6 million, all unsecured, per Exame. Zurich Minas Brasil Seguros holds R$1.97 billion, and Banco Digio R$655.6 million.
Banco do Brasil holds R$598.1 million within the plan. Bradesco’s combined direct and Digio exposure is R$4.78 billion, per Exame, but only part is subject to the plan.
O Tempo classifies the claims: R$16.68 billion unsecured, R$153.8 million ME/EPP, and R$10.99 billion extraconcursal. Total debt exceeds R$27.8 billion if extraconcursal credits count.
Share price falls sharply
BHIA3 shares closed Friday, August 14, at R$0.66 per share. On Monday, August 17, the stock fell to an intraday low of R$0.42, down 36.36 percent, per Money Times.
InfoMoney reported a drop of more than 33 percent at R$0.44. Poder360 recorded R$0.46, about 30 percent down, in morning trade.
No official close for August 17 has been published.
What comes next
The court has not yet ruled on processing the recovery request. That ruling would start a 60-day deadline for a plan and a 180-day stay on creditor actions.
Creditors have no committee yet, because the court has not ruled on processing. This is the group’s second restructuring, after an out-of-court deal in April 2024 covering about R$4.8 billion.
CEO’s outlook for 2027
On the August 17 analyst call, CEO Renato Franklin forecast a worse 2027: “Consideramos que 2027 sera pior que 2026,” he said. “Nos dimensionamos essa fase dois, considerando um 2027 pior do que 2026.”
The company does not expect improvement in the macro scenario, Franklin told analysts. The comments came one day after the recovery filing.
Frequently Asked Questions
What is judicial recovery in Brazil?
Judicial recovery is a court-supervised reorganization process under Brazilian bankruptcy law. It lets a company continue operations while negotiating debt repayment with creditors, similar to Chapter 11 in the United States.
What is DIP financing?
DIP financing, or debtor-in-possession financing, is a loan provided to a company during reorganization. It usually has priority repayment status to encourage lenders to provide funds for ongoing operations.
How much debt is Casas Bahia restructuring?
Casas Bahia is seeking to restructure about R$17.3 billion in debt, according to G1 and Exame. Over 94 percent of that is unsecured, per the petition.
Which creditors are named in the recovery?
Samsung has R$937.6 million in unsecured claims, and Zurich Minas Brasil Seguros holds R$1.97 billion. Banco Digio and Banco do Brasil hold R$655.6 million and R$598.1 million respectively.
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