The Klein family returns to being among the main shareholders in 2019; professionalized management carries out a restructuring that seeks to focus the company on traditional retail
A Casas Bahiaentered into extrajudicial recovery this Sunday 28th, it is currently a company with dispersed capital, despite its long relationship with the founding family Klein. Extrajudicial recovery is a negotiation between the debtor company and its creditors to renegotiate the debt, without depending on the intervention of the court.
The company renegotiates debts worth R$4.1 billion. The recovery request has already been agreed in advance with the main creditors, Bradesco AND Bank of Brazilwhich holds 54.5% of the debts.
The Klein family currently owns approximately 24% of the company’s shares, but only Raphael Klein, the founder’s grandson, Samuel Klein (1923-2014), sits on the board of directors.
The retail chain, specializing in electronics and furniture, was founded in 1952, from the sales as a street vendor, of the entrepreneur Samuel Klein, born in Poland and who fled the Nazi extermination during the Second World War, before settling in São Caetano do Sul (SP).
According to Michael Klein, in an interview with Estadaothe crisis is linked to the company’s attempt to accelerate growth during the Covid pandemic, with massive investments in e-commerce.
“At the time it was better to turn to e-commerce. The pandemic passed and the company continued to favor online. But the scenario has changed, with the entry of new competitors, such as Amazon, Shopee and Shein” , has explained. “The new board has revived the original role of retail, that is, the provision of physical credit, in person, through an interview.”
In an interview last year, Renato Franklin was along the same lines. “We were spending a lot of money to build a lot of things. This is an unhealthy fight that burns money nonstop. If you go to the side, outside of this, which has always been our differentiator as Casas Bahia, we are in a blue ocean,” he said.
Source: Terra
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