The subsidiary of the DIA supermarket chain in Brazil has announced a request for “judicial recovery”, which represents a restructuring process under the country’s law. The objective is to try to overcome its current economic and financial situation after announcing the closure of 343 stores, as reported by the company to the National Securities Market Commission (CNMV).
The group has indicated that the request for “judicial recovery” is limited exclusively to Dia Brasil, and therefore does not impact the financial situation of Spain and Argentina, where currently the DIA Group has achieved “a relevant position with a strategy focused on “Proximity food distribution.”
The “judicial recovery” procedure is a regulated alternative in Brazil whose purpose is to try to help the continuity of operations in companies with economic and financial difficulties in said country. Likewise, this request comes after the restructuring process in Brazil announced on March 14.
A total of 343 stores.
As reported, after the persistent negative results recorded in the country, DIA Brasil decided to undertake the closure of 343 stores, 58% of the total, and three warehouses to try to give greater stability to its operation while waiting to define new decisions. . strategic, as mentioned this Thursday.
The group has recalled that since its arrival in Brazil in 2001, it has made a “strong investment and effort in the country that has not obtained the expected return, persisting in recurring losses, a situation that has finally led to the decision to opt for the aforementioned judicial recovery process as a potential stabilizer of the situation of DIA Brazil.”
The request for Judicial Recovery is limited exclusively to DIA Brazil, and, therefore, does not impact the financial situation of Spain and Argentina, where the DIA Group has currently achieved a relevant position with a strategy focused on local food distribution.
