Under judicial recovery, a neighborhood supermarket chain has decided to leave the country permanently; The manager MAM Asset made it possible for one of its clients to purchase the operation
After requesting judicial recovery in the second half of March, following a restructuring process which culminated in the closure of 343 stores and 3 distribution centres, the Spanish group Day has decided to leave Brazil permanently. Manager MAM resourceFrom Master Bankit made it possible to create a fund for one of its clients to purchase the operation in the country. The name of the customer and the amounts involved were not revealed.
The Spanish chain, in turn, has committed to providing a contribution of 39 million euros to Dia Brasil in the operation. It was unclear how the group would operate in the country from then on.
According to a statement, the conclusion of the transaction is subject to Grupo Dia obtaining authorization from the financial institutions of the banking syndicate, the company’s creditors.
Debts
Since arriving in Brazil in 2001, Grupo Dia has made large investments in the country, which the company says have not brought the expected return. For this reason it decided to focus on Spain and Argentina, “where it has currently achieved an important position with a strategy focused on local food distribution”.
With debts of around R$1 billion, Dia Brasil filed a request for judicial recovery on March 21 following a restructuring process for the country, announced a week earlier. As reported at the time, this was an attempt to stabilize the operation, after “persistent negative results in the country”.
Grupo Dia operates with neighborhood supermarkets with around 4 thousand points of sale spread across Spain, Argentina and Brazil. There are still around 240 units in the country, both owned and franchised. All located in the State of Sao Paulo, they directly employ more than 2,500 people.
Source: Terra
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