Magalu’s losses remove the outcome of the dispute with Kabum! – 08/14/2023 – Panel SA

The announcement of Magazine Luiza’s loss for the second consecutive quarter increased the concern of the partners of KaBuM!, an e-commerce specialized in games and technology products, in reaching an outcome in the dispute with the retailer.

Leandro and Thiago Ramos, founders of KaBuM!, are trying to reverse the sale, which took place in 2021, as they have not yet received the deal.

With the negative results and competition with China, Magazine is increasingly moving away from settling the account, which continues to be discussed in an arbitration court.

The Ramos brothers demand compliance with the contract signed with the retailer. The first installment, in the amount of R$ 1 billion, was paid, but Magazine Luiza did not honor the rest of the agreement, in the amount of R$ 2.5 billion in shares. They want the deal to be undone or, then, for the retailer to complete the agreed amount of R$ 3.5 billion.

Magazine Luiza had a loss of around R$ 200 million in the second quarter, according to an announcement to the market this Monday (14). The company had a loss of R$ 391 million in the first quarter of this year.

With Diego Felix

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