(Bloomberg) — Cia. Brasileira de Distribuição, a Brazilian supermarket chain known as GPA (), hired the firm Munhoz Advogados, which specializes in debt restructuring, according to people familiar with the matter.
The goal is to negotiate in an organized manner with creditors and, eventually, even , said one of the people, requesting anonymity because the information is not public.
A GPA spokesperson denied any discussion of a request for judicial recovery. Munhoz Advogados declined to comment.
Companies in the retail sector in Brazil, such as supermarkets, have been pressured by double-digit interest rates and high levels of debt. GPA, which has struggled to turn around its core food business, said in February that management was taking steps to mitigate risks associated with heavy debt due in 2026.
“These measures include negotiations to extend financial debt terms, reduce costs and financial expenses and monetize tax credits,” stated the company in the explanatory notes to its fourth quarter balance sheet.
GPA’s leverage, measured by the ratio between net debt and earnings before interest, taxes, depreciation and amortization (EBITDA), jumped to 2.4 times at the end of 2025, from 1.6 times a year earlier. Net debt rose to 2.08 billion reais (US$395 million), from 1.39 billion reais in 2024.
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In January, the supermarket chain hired the consultancy Alvarez & Marsal to help with the execution of its efficiency plan, according to a relevant fact.
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