BRAZIL · BUSINESS
Key Facts
- What is happening Whirlpool, the US appliance maker listed on the New York Stock Exchange, booked a US$54 million third-quarter charge for a Latin American customer’s bankruptcy reorganization, in results dated Monday, 26 October.
- Why it matters Whirlpool names Grupo Casas Bahia, a large Brazilian appliance retailer in court-supervised restructuring, as the customer behind the charge, which pressured its Latin America profit margin.
- The numbers Latin America sales rose 6.9% to US$858 million, but operating profit fell 61.3% to US$18 million. The charge is US$46 million of customer credit losses plus US$8 million of other direct costs.
- Who is who Whirlpool Corporation is based in Benton Harbor, Michigan, and led by chief executive Marc Bitzer. Casas Bahia, a Brazilian retailer, is in judicial recovery, Brazil’s version of US Chapter 11.
- What to watch The creditor vote on Casas Bahia’s restructuring plan, which has no published date, and whether Whirlpool books more credit losses. Whirlpool now expects a full-year ongoing loss of about US$1.30 per share.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
- What it means for you Owners of Whirlpool shares carry a Brazilian credit loss on top of weak US demand, and US suppliers that sell to Brazilian retailers see how fast a customer’s restructuring can cut margins.
Whirlpool took a US$54 million charge for a Latin American customer’s bankruptcy reorganization in the third quarter. Its results name Brazil’s Casas Bahia as the reason Latin America profit fell.
Whirlpool, the American appliance maker, booked a US$54 million charge in the third quarter for a significant Latin American customer’s bankruptcy reorganization. Its quarterly filing names that customer as Casas Bahia, and results dated Monday, 26 October say it pressured margins.
Casas Bahia is a large Brazilian appliance retailer, and a São Paulo court has accepted its request for judicial recovery. Judicial recovery is Brazil’s court-supervised restructuring, similar to Chapter 11 in the United States.
What Whirlpool Said About Latin America
Whirlpool’s Latin America appliance segment had sales of US$858 million in the quarter, up 6.9% from US$802 million a year earlier. Excluding currency effects, sales rose 2.5%, driven by volume.
Operating profit before interest and tax (EBIT) fell 61.3% to US$18 million, and the margin dropped to 2.0%, down 3.6 percentage points. The release blames mix shifts following Grupo Casas Bahia’s bankruptcy reorganization.
Whirlpool also announced price increases of up to 10% across the region. Chief executive Marc Bitzer said cost cuts and pricing drove margin progress through the third quarter.
He added that the pace of recovery is slower than expected, with further improvement set for 2027. The company expects a full-year ongoing loss of about US$1.30 per share.
How the US$54 Million Charge Is Built
The charge sits in selling, general and administrative costs. Whirlpool excludes it from ongoing earnings because it says the item is not indicative of ongoing operational performance.
Of the total, US$46 million is customer credit losses, net of expected insurance recoveries, and US$8 million is other direct charges. The release cites US$157 million of gross receivable impairments, net of US$112 million of expected insurance recoveries.
Whirlpool’s quarterly filing with the US Securities and Exchange Commission, the market regulator, says a Brazilian unit guarantees customer bank credit. It recorded US$46 million under that guarantee in the quarter.
Guaranteed amounts fell to BRL 1.7 billion (about US$320 million) on 30 September from BRL 2.1 billion (about US$380 million) in December. The unit insures a significant portion of that credit risk under normal conditions, the filing says.
Where Casas Bahia Stands
Casas Bahia’s group asked for judicial recovery in August, and the São Paulo bankruptcy court accepted the case by Wednesday, 21 October. A 180-day stay on debt collection runs from 19 August, and creditors must still approve a plan.
The group lists total debt of BRL 17.3 billion (about US$3.2 billion). Of that, BRL 16.4 billion (about US$3.1 billion) is unsecured, meaning without collateral.
Whirlpool is listed with a claim of BRL 635.9 million (about US$119 million). Samsung, Electrolux and LG, also appliance makers, and phone maker Motorola are listed too.
The five suppliers are each owed BRL 619 million to BRL 938 million (about US$116 million to US$175 million), all unsecured. Together they claim about BRL 3.52 billion (about US$657 million), converted at about 5.35 reais per US$ on 28 October.
What It Means for US Readers
Whirlpool shares trade in New York under the ticker WHR, so Brazilian credit losses reach US portfolios. The company expects a full-year ongoing loss of about US$1.30 per share and a GAAP loss of about US$4.95 per share.
The customer charge accounts for about US$0.85 of that full-year GAAP loss per share, its outlook table shows. GAAP means results under US accounting rules, before Whirlpool strips out one-off items.
US suppliers that sell to Brazilian retailers can see the risk of extending credit to a customer in reorganization. Whirlpool’s insurance limited its credit loss to about US$46 million from US$157 million gross.
Background is in earlier reports on the Casas Bahia judicial recovery and on shareholder backing for the filing. See also Brazil retail stocks after the election and the Brazil hub.
What Is Not Known
Whirlpool’s results release does not name the customer, but its quarterly filing names Casas Bahia. Neither document gives a separate figure for Casas Bahia’s effect on profit.
The filing, signed Tuesday, 27 October, ties the US$54 million charge to Casas Bahia in Latin America. Whirlpool’s own claim in the Brazilian case is not confirmed.
The court decision was read in trade press and not checked at the court, which reportedly wants missing documents within 30 days. The creditor-list entry of BRL 635.9 million (about US$119 million) may differ from Whirlpool’s own figure.
It is not known when creditors will vote on a plan or what share of their claims they will recover. Whirlpool has not said whether it expects to recover more than its insurance covers.
What Comes Next
The creditor vote on Casas Bahia’s plan is the next big step, and no date has been published. Whirlpool’s fourth-quarter results, due after the year ends, will show whether more credit losses follow.
Frequently Asked Questions
What is Whirlpool’s charge in Latin America?
Whirlpool booked a US$54 million third-quarter charge for a significant Latin American customer’s bankruptcy reorganization. Of that, US$46 million is customer credit losses, net of expected insurance recoveries.
Who is Casas Bahia?
Grupo Casas Bahia is a large Brazilian appliance and electronics retailer now in judicial recovery. Its creditor list shows total debt of about US$3.2 billion.
How much does Casas Bahia owe Whirlpool?
The creditor list shows Whirlpool owed BRL 635.9 million (about US$119 million). Whirlpool’s filings do not state its own claim.
How are Whirlpool shares affected?
Whirlpool trades on the New York Stock Exchange as WHR. It expects a full-year ongoing loss of about US$1.30 per share.
What is judicial recovery in Brazil?
It is Brazil’s court-supervised restructuring, similar to Chapter 11 in the United States. It pauses debt collection, here for 180 days, while the company negotiates a plan with creditors.
Sources: Whirlpool Corporation, third-quarter 2026 results release (Form 8-K, Exhibit 99.1), 26 October; Whirlpool Corporation, Form 10-Q for the quarter ended 30 September 2026; InvestNews, creditor list of the Casas Bahia recovery, 17 August; Investidor10, Casas Bahia debt and creditors, 17 August; Mercado & Consumo, São Paulo court decision, 21 October (all accessed 28 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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