Brazilian retailer Americanas (AMER3.SA) announced that it’s going to file for bankruptcy after uncovering $4 billion in accounting inconsistencies last week. Founded in 1929, Brazil’s Americanas is an e-commerce company having various payment methods and mobile app for easy shopping.
Americanas stated on Thursday that it is currently working on the possibility of filing for judicial recovery in the next few hours. “Although it has not yet been decided, the management is working with the possibility of in the next few days or potentially in the next few hours approving filing, on an emergency basis, a request for judicial recovery,” Reuters quoted Americanas as saying in a securities filing.
Americanas’s current cash position is at 800 million reais ($154.25 million) after a court decision allowed a lender to withhold money from the firm. Lender BTG Pactual obtained a court decision overturning part of Americanas’ protection from creditors, which the retailer said would “harm its viability”.
The company is also famous for its physical store network. It offers fast delivery options and is also known for a loyalty program and a wide range of products, including electronics, fashion, and home goods. As of November 2022, the Brazilian retail giant Lojas Americanas S.A. operated a total of 1,017 traditional and 800 express stores nationwide. Headquartered in Rio de Janeiro, the company also had a strong presence in the e-commerce market with over 1,300 convenience stores under the name Vem Conveniência.
($1 = 5.1863 reais)