05/17/2024 – 0:20
The Polishop retail chain filed for judicial recovery last week, but the 2nd Bankruptcy and Judicial Recovery Court of São Paulo has not yet ruled on the case. The company confirmed the request and is awaiting analysis by judge Paulo de Oliveira Filho.
In the RJ request that IstoÉ Dinheiro had access to, the lawyers state that “there is no alternative to overcoming the current situation of a deficient economic-financial crisis, other than through restructuring through the Judicial Recovery process, which aims to contribute to the economically viable business society overcomes difficulties and remains in the market generating income, jobs and taxes, thus exercising its social function”.
The same document states that “there is a need to process its Judicial Recovery, the purpose of which is to adjust the Claimant’s cash flow, in favor of resuming the financial balance required to pay its debts through a restructuring plan – R$ 352,190,023.92 (three hundred and fifty-two million, one hundred and ninety thousand, twenty-three reais and ninety-two cents)
-, which, if the processing of the Judicial Recovery is granted, will be presented to the creditors at an opportune procedural moment”. And it continues, “it is already public knowledge and well-known that Polimport is adopting commercial and economic strategies and measures to overcome this transitory moment of crisis, such as an investment of R$ 50,000,000.00 (fifty million reais) in the company and opening of the store franchise plan”.
On April 3, Polishop had already filed a request for early protection in the 2nd Court of São Paulo, claiming that it was not yet able to present the request for recovery due to the lack of documents necessary for the filing.
But due to its financial situation, it needed an “urgent measure” to suspend debt foreclosures and evictions, which could make the business unviable.
On April 3rd, the injunction was granted. This was an anticipation of the effects of the judicial recovery processing permitted by the 2005 law on the subject.
It claims that the business was impacted by the pandemic.
The request points out possible reasons that led to the current situation. “In practice, the pandemic resulted in the closure of more than half of Polimport’s physical stores since 2020, when the company had 2,532 (two thousand, five hundred and thirty-two) employees, increasing to approximately 500 (five hundred) employees – in other words, approximately 2,000 (two thousand) employees were laid off. It now has 280 (two hundred and eighty) physical stores of its own (in addition to its e-commerce), with the annual launch of more than 150 (one hundred and fifty) products, reaching annual revenue of more than R$ 1,200,000,000.00 ( one billion and two hundred million reais), always with innovative, exclusive products in different market segments”
“Currently, Polishop has 49 (forty-nine) physical stores open in shopping centers and has almost 500 (five hundred) employees, in addition to operating in e-commerce and the telesales channel.”
In April, the company’s CEO, João Appolinário, in an interview with This is Moneystated that the company intended to start exploring the franchise model of physical street stores, with an eye on medium and large cities to expand its presence in the country and get back on its feet.
Now, the Court will analyze the restructuring request. If accepted, the company will, in fact, enter into judicial recovery and have its debts frozen for 180 days, while it prepares a restructuring plan. When contacted, the company stated that it will only comment after the court accepts it.
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