Former bookstore market leader, Hail gained breath to try to get out of its serious financial crisis. In a judicial auction held this week, he sold the point of a store in the Shopping Ibirapueranow leased by retailer Centaurin addition to tax credits, determined the Estadão. With this, the retailer will reduce its debt by around R$ 160 million, which already reached R$ 500 million. The deal will be concluded only after judicial approval of the winning proposals.
“There is still a lot to be done, but it is an important step. And the sale was also from a store that Saraiva already knew how to live without”, comments a source close to the company, who requested anonymity. The space now occupied by Centauro is the only point that currently belonged to Saraiva – the rest of the open stores work in rented areas. The tax credits originally belonged to the Bank of Brazilbut are now in the hands of the Travessia fund, the BTG Pactual.
These were the only assets available for sale, according to the judicial reorganization plan. Previously, the company tried to sell its e-commerce (Saraiva.com), an asset that was auctioned on more than one occasion, without success.
The money from the sale will not go into the company’s cash; will be used exclusively for the reduction of indebtedness. The remainder of the debt must be paid through cash generation. Creditors may also choose, according to the last approved plan, to exchange the debt for shares.
The internal view is that, in order to exit the judicial reorganization, Saraiva will need to have products on consignment again (the store displays the product, without the need to purchase). Thus, you would no longer need to spend your cash to have assortment on your shelves.
It is a common market practice. However, after taking several defaults, the publishers are refusing to act in this scheme with the network. In other words: Saraiva only receives books if it buys them, according to market sources
In the last report disclosed in the case file, the trustee, the RV3informs that Saraiva recorded a loss of BRL 15.8 million from January to April this year, more than that recorded in the whole of 2021.
According to the company’s most recent result, referring to March, Saraiva had 34 stores. At the beginning of 2017, a year before the judicial recovery, there were 113 stores. Reading from Minas Gerais, which took over some stores that were previously owned by Saraiva, is today the industry leader.