Surge in Judicial Recovery Requests Highlights Financial Struggles of Brazilian Companies in 2026
Brazil sees a sharp increase in judicial recovery filings by major companies in 2026 amid debt and credit challenges.
- • Grupo Gennius, owner of Habib's, filed for judicial recovery with R$ 265 million liabilities.
- • Several major retailers, including Casas Bahia and Americanas, are seeking judicial protection.
- • Rising debt and high interest rates are key factors driving filings.
- • In 2025, a record 977 judicial recovery processes were filed, with 268 in early 2026.
Key details
In 2026, Brazilian companies are increasingly turning to judicial recovery as a measure to cope with financial difficulties amid challenging economic conditions. This surge in filings comes in the wake of Oi's bankruptcy declaration and the judicial recovery filing by Grupo Gennius, owner of the Habib's and Ragazzo chains, which reported liabilities of R$ 265 million.
Grupo Gennius is among several prominent companies including Casas Bahia, Toky (encompassing Mobly and Tok&Stok), Lojas Marabraz, CVLB (Casa&Video and Le Biscuit), and Americanas, all seeking legal protection to restructure their debts and operations. Key drivers behind this wave of filings are rising debt levels, persistently high interest rates that limit access to credit, and a marked decline in household consumption.
The financial troubles are particularly acute in the retail sector where shortages in credit create a domino effect: disrupted cash flow prompts suppliers to halt deliveries, causing inventory shortages, declining sales, and ultimately eroding profits.
Data underscores the severity of the crisis: a record 977 judicial recovery processes were filed in 2025, and in the first four months of 2026 alone, there have been 268 filings involving 602 company registrations (CNPJs), according to Serasa Experian. Each company faces its own path through recovery, but the common challenges of debt and credit access remain central.
This wave contrasts with other segments of the Brazilian economy, where some companies have managed sustainable growth despite obstacles like high interest rates and tax reforms. For example, 491 companies featured in the 2026 Ranking EXAME Negócios em Expansão demonstrated a 32% revenue increase in 2025, collectively reaching 42.2 billion reais in net revenue.
As judicial recovery filings continue at elevated levels, the affected companies and their creditors must navigate complex restructuring processes against a backdrop of ongoing economic headwinds in Brazil.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
