Record number of Brazilian companies seek bankruptcy protection

Retail giant Casas Bahia joined a wave of businesses seeking court protection as high interest rates squeeze cash flow and proceedings that stretch for years swell the backlog. RIO DE JANEIRO (CN) — Casas Bahia, a retailer that has symbolized access to consumer goods for working-class Brazilians for more than seven decades, entered August with stores in roughly 1 in 10 Brazilian municipalities. The chain built its business by selling furniture and appliances on installment plans to low-income families, many of whom lacked access to banks. That month, the company closed nearly 300 stores, laid off about 3,000 employees and filed for judicial reorganization, Brazil’s closest equivalent to Chapter 11.

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