urgent! Dona das Casas Bahia will close 100 stores and lay off 6,000 employees by the end of the year

Dona das Casas Bahia will close about 100 stores due to a large net loss of R$492 million. The closure will result in mass layoffs of up to 6,000 employees.

VIA, owner of Casas Bahia and Ponto, announced last Thursday (10) a new business plan that includes a reduction of up to R$1 billion in stocks in 2023, as well as a change in the financing form of the financial credit. appreciation is that The owner of Casas Bahia closes from 50 to 100 stores Until December this year, resulting in mass layoffs of up to 6,000 employees.

Dona das Casas Bahia suffered a loss of R$492 million

Corporate restructuring, which will end in mass layoffs, combined with the results of the second quarter of this year for the company, which incurred a net loss of R$492 million. The result reflects a profit of R$6 million shown in the same period last year.

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Adjusted Ebitda of R$ 469 million, down 32% compared to what was reported from April to June 2022, a margin of 9%, 2.7 percentage points lower than last year. The net income of the Casas Bahia owner, in turn, decreased by 2% to R$7.5 billion.

In total, assets of up to R$4 billion are still expected to be monetized this year. There will be more than R$2.5 billion in tax credits, which, if the plan goes as expected, will become cash for the company. This is also in addition to the R$1 billion earmarked for the release of stocks and another R$500 million in real estate sales to other assets.

Via, owner of the Casas Bahia chain, will close the units after a change in management

In a conference with analysts last Friday (11), the head of VIA said, Renato Horta Franklinsaid that as of December it plans to take advantage of almost all the benefits of its new business plan.

According to Franklin, the outlook does not include prospecting for credit card financing for FIDC funds, which requires more time. The shift of owner of Casas Bahia, which could lead to mass layoffs, follows a shake-up in the company’s senior management during the second quarter of this year.

Renato Horta Franklin has left the car rental company he moved To take over the head of the retailer, Eliseo Mitsuhiro, who worked on the auto items producer Gotchaby Maxion and food company BRFHe is now the Chief Financial Officer.

Franklin explains that the company already has a growth strategy focused on sales through digital media, as well as opening new channels, expanding stores, and betting on financial technology companies.

According to the executive, VIA VIA understands that all this has been done. A superhero platform has already been built, and it’s big. So come and invest To increase growth or take and monetize what you already have, resulting in mass layoffs, it is better to make money with what you already have.

Reduction of 40% of its investment by the owner of Casas Bahia

FIA also announced that it is planning to Reduce your investment by up to 40%. With these announced operational shifts in place, the company estimates it could generate R$1 billion in net profit, excluding income tax, but it doesn’t know when.

The company’s plan, which could lead to mass layoffs, has a string of huge earnings gains through 2025. However, Mitsuhiro stressed that this is not a plan that will last through 2025, without elaborating on the timeline.