The Justice decreed the bankruptcy of Livraria Cultura this Thursday (9). The company pointed to the drop in book sales and the Brazilian economic crisis since 2014 as the reasons that sealed its fate. The company can still appeal the decision.
The sentence was handed down by Judge Ralpho Waldo De Barros Monteiro Filho, from the 2nd Bankruptcy and Judicial Recovery Court of São Paulo. According to experts heard by Estadão, Livraria Cultura showed signs that it would not be able to honor the payments provided for in the judicial recovery plan since 2019.
“It is a classic conversion: failure to comply with the plan. The judge gave them opportunities to express themselves, but they did not present strong elements to maintain the judicial recovery”, says Renato Leopoldo e Silva, leader of civil corporate litigation, judicial recovery and arbitration at DSA Advogados.
The payment of labor rights and other creditors will depend on the company’s cash. “In bankruptcy, the order established by law says that there is preference in payments. First, comes the workers (150 minimum wages per creditor), and then credits with real guarantees, tax credits and unsecured credits (suppliers and service providers)”, says Adriana Conrado Zamponi, partner of Wald, Antunes, Vita e Blattner Lawyers. “Bankruptcy is always the worst situation for everyone. In judicial recovery, even with a discount on the payment of amounts, it is better than bankruptcy.”
Livraria Cultura has a unit in São Paulo, in Conjunto Nacional, and another in Porto Alegre (RS). If the bankruptcy decision is upheld, the stores are likely to close soon.
In the request for judicial recovery, the company stated that it had BRL 285.4 million in debt. The company will have two days to identify and appraise its assets. Real estate, stock and even your brand can be sold. The bankruptcy process will be handled by Laspro Consultores.
Source: CNN Brasil
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