Ricardo Eletro has bankruptcy decreed by the Courts; CEO says, “Let’s appeal”
In an interview with EXAME, Pedro Bianchi says that the company’s accounts were approved by the judicial administrator and that he is awaiting a favorable decision soon
The Justice of São Paulo declared bankruptcy from the retailer Ricardo Eletrocontrolled by vending machine. With a debt of R$ 4.6 billion, the company is in judicial recovery since 2020 and approved its recovery plan in September last year. The plan was awaiting approval from the Court. The bankruptcy information was published by the Economic value and confirmed by EXAME.
The news was met with surprise by the company that is appealing the decision. In interview with EXAMEO Ricardo Eletro CEO Pedro Bianchi, said the decision “took everyone by surprise”. “All our accounts have been approved by the judicial administrator and our payroll is up to date. We have already appealed and hope to have a favorable decision soon“, said.
The executive also says that no creditor has filed for the company’s bankruptcy and it is not up to the judge to carry out an economic-financial analysis of the business.
In the decision, the judge of the 1st Court of Bankruptcy and Judicial Reorganizations of the Foro Central de São Paulo, Leonardo Fernandes dos Santos, says that one of the reasons that led to the decision was the “equity emptiness” of the company, and that the company “does not gather proceeding conditions”.
The appeal filed by the group of companies that control Ricardo Eletro states that the Court’s decision “is based on completely distorted premises”. In the document, the company’s lawyers say that the assessment that the retailer cannot operate without its own stock “is contrary to all the evidence from the world market, which demonstrates that the online operation, without its own stock, is increasingly profitable — , for example, the platform used by Mercado Livre”.
In judicial recovery, Ricardo Eletro closed all its physical stores in 2020 and now operates only on the internet. Last month, the brand renewed its logo for the first time in 30 years, to mark the current moment of the company, which started to focus on the marketplace.
The CEO says that the brand currently has around 3,000 items for sale on its website and another 30,000 products will be included in the portfolio in the coming months. The expectation is to end 2022 with revenues of around R$ 100 million.