company files for judicial recovery

The Brazilian retail sector is going through a crisis caused by high interest rates, a drop in income and credit and a rise in the dollar. The Polishop network is the most recent victim of this economic scenario, as it filed its request for Judicial Recovery (RJ) at the São Paulo Court of Justice (TJ-SP). The decision has been analyzed by judge Paulo Furtado de Oliveira Filho, from the 2nd Bankruptcy and Judicial Recovery Court of the TJ-SP. The firm's lawyers, Roberto Notari and Marco Antonio Tacco, and the founder of Polishop, João Appolinário, have not yet spoken to the press.

Accumulation of debt

In April of this year, Polishop went to court initially requesting early relief, a temporary decision until the merits of the action are judged, in order to suspend the execution of the company's debts. At the time, its founder reported in an interview with the newspaper O Estado de S. Paulo, that the company was seeking an extrajudicial restructuring to resolve a debt of R$84 million with creditors, and this debt was approximately R$270 million in January 2022, which demonstrates the company's attempt to reduce its financial deficit. In these 2 years, Polishop has already closed around 100 stores in shopping malls and has been the target of more than 50 eviction actions. In the list of its creditors, we can mention: Google, Banco Safra, Itaú, Banco Votorantim, XP Industrial Fundo de Investimento Imobiliário and AD Shopping. At the end of 2022, the company began closing stores and mass layoffs of its employees, causing complaints from shopping malls regarding late rent for closed stores.

Pioneer in retail

Polishop was founded by Appolinário in 1996 as one of the pioneering stores in exploring a highly successful segment in the United States, telesales. With the exchange rate controlled due to the Real Plan, it was easier to sell imported products. Its commercials were broadcast at alternative times on open TV, including channels with lower ratings, in the early hours of the morning and in the afternoon. Its product line was diverse, ranging from weight loss pills to exclusive household items.

Featured Photo: one of the facades of the Polishop store in a shopping mall in Brazil (Reproduction/Instagram/@polishop)