The recent surge in bankruptcy filings by traditional retail companies has put the sector at the center of Brazil’s economic and legal debate. In 2026 alone, companies like Tok&Stok and Mobly, Marabraz, Casa & Vídeo, and most recently, Grupo Casas Bahia, have resorted to the instruments provided by Law 11.101/05 to address their worsening economic and financial difficulties and reorganize their debt.
Several factors have made the environment particularly adverse for the sector. The current Selic rate of 14% per year increases the cost of credit and refinancing debt, affecting not only businesses but also consumers who face more expensive credit and reduced purchasing power.
The retail sector is heavily dependent on working capital to operate, with inventories to finance, suppliers to pay, and stores to maintain. They feel pressure at both ends, as the cost of financing operations increases when consumer spending power decreases.
Structural changes in consumer behavior have affected the retail sector. The expansion of e-commerce and marketplaces has increased price comparison and reduced the competitive advantages of traditional physical retailers. International platforms also pose strong price competition.
Business models based on extensive store networks, high fixed costs, and large inventory volumes have become less viable in some segments, requiring greater adaptability. The sector must adapt to these changes to remain competitive.
The numbers help to dimension this crisis scenario. According to data from the RGF-BIZDOC monitor, the first half of 2026 ended with 7,980 companies in judicial recovery in the country, an 8% increase in the semester and 21.2% in 12 months. In the retail sector, there were 1,649 companies in judicial recovery at the end of June, 22% more than the previous year.
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Judicial recovery is just one of the restructuring measures applicable. Law 11.101/05, especially after the changes made by Law 14.112/20, has expanded and improved the mechanisms for preventing and treating business crises, giving greater relevance to negotiated solutions and instruments that can be used before or during the restructuring process. This legislation now offers a broader range of alternatives, including precautionary measures, out-of-court recovery, and judicial recovery.
Conciliation and mediation can be used prior to the recovery process, and out-of-court recovery allows for structured negotiations with certain creditor groups, followed by judicial homologation of the plan. It provides companies with more options to address their financial difficulties.
The recent evolution of the retail sector shows that these instruments can be used successively. The cases of Tok&Stok and Grupo Casas Bahia are examples of the use of different instruments throughout the restructuring process, with initial out-of-court recovery and subsequent judicial recovery filings. They demonstrate the need to adapt the restructuring to a changing economic and financial reality.
The successive use of these mechanisms does not necessarily represent the abandonment or failure of the previously adopted strategy but rather the need to adapt to new circumstances. The earlier the signs of deterioration are recognized and the available mechanisms are evaluated, the greater the possibilities of preserving value, maintaining relevant commercial relationships, and preventing a liquidity crisis from evolving into an economic inviability situation.
In a legal perspective, the current scenario of the Brazilian retail sector reveals two realities that, far from being contradictory, should be analyzed together. On the one hand, there is an effective economic crisis that has pressured traditional companies and driven the number of restructurings. On the other hand, there is a more developed recovery system that is being increasingly used, capable of offering different paths for economically viable companies to face their difficulties before the deterioration of activity becomes irreversible. This recovery system is essential for companies to address their financial difficulties and reorganize their debt.
Understanding the crisis as a process that can be identified, negotiated, and reorganized, rather than just a step prior to bankruptcy, is essential. The crisis can be managed with the right tools and strategies, and companies can emerge stronger and more resilient.
