Casas Bahia Reports R$10.1 Billion Q2 Loss and Accelerates Restructuring

Overview

• The company disclosed on Sunday that it posted a R$10.1 billion net loss for the second quarter of 2026, driven by R$9.1 billion in non‑recurring items such as asset write‑downs, restructuring costs, contracts that did not perform and deferred tax effects.
• On an adjusted basis the retailer showed a R$978 million loss, a 76% year‑on‑year deterioration, with adjusted EBITDA falling to R$518 million and net revenue rising only 1.6% to R$6.97 billion, signalling persistent pressure on profitability and cash generation.
• Management has accelerated Phase 2 of its transformation plan to prioritise cash and margins over volume, including the closure of 298 stores and reviews of inventory, assortment, purchasing volumes and workforce levels.
• Executives met with partner banks and restructuring lawyers in the week before the results and said that failed capital raises and tighter credit conditions in 2026 forced the company to speed downsizing and reassess funding options.
• The board is evaluating measures to reorganise liabilities and has not ruled out a new extrajudicial or judicial recovery, but any formal restructuring depends on negotiations with banks, suppliers and landlords and carries material execution risk for employees, creditors and suppliers.