Polishop: judge anticipates effects of judicial recovery – 04/05/2024 – Market

Polishop had its request for early protection granted and protected itself against eviction orders from its physical stores, blocking of financial assets and removal of its ecommerce website from sales and marketing platforms.

The decision was given this Friday (5) by judge Paulo Furtado de Oliveira Filho, of the 2nd Bankruptcy and Judicial Recovery Court of the TJ-SP (Court of Justice of São Paulo).

The company requested relief because it argued that it did not have all the documents to request judicial recovery. But the judge said he considered that the request was plausible in his law and granted the protection that, in practice, anticipates the effects of judicial recovery.

In its request, the retail company said it was on the verge of serious financial loss to its activity.

In the process of restructuring and with debts of around R$400 million, Polishop told the judge that it was not currently able to submit a request for judicial recovery.

Part of the company’s debts refers to unpaid rent for its stores in shopping centers, but there are also labor debts. In 2020, when the Covid-19 pandemic began, Polishop had 278 physical stores. By early 2023, the number had dropped to 161.

Oliveira Filho also ordered that his order be sent to 50 companies that have a commercial relationship with Polishop, with a daily fine of R$10,000 in case of non-compliance with the decision.

He also appointed Cabezón Judicial Administration as temporary judicial administrator, with the task of supervising Polishop’s activities.