Marisa says she will earn an additional R$40 million in 2023 by closing 88 stores | Photo: Fred Magno/O Tempo
Marissa completed its announced unit closing process in March of this year and has closed 88 stores, it was announced to investors this week. The retailer’s initial plan called for closing 92 stores that had negative cash, but the company claims it has been able to optimize costs for six of them to keep it running. About 60% of the employees who worked in closed stores have been fired, and the rest have been transferred internally.
In the state of Minas Gerais, three Marisa stores are closed: in Belo Horizonte, Pouso Alegre and Uberlandia. Most of the closed units in the country are on the street, 59th, and the remaining 29th are in shopping centers. With the closures over, there are 246 retail stores in the country. The company invested R$44.5 million in the closing, however, it claims to have received R$40 million in additional earnings this year and expects R$60 million annually from 2024.
“Adjusting the store network during the forecast period was one of the main and most challenging measures designed into our restructuring plan. The successful implementation of the plan to close stores and reduce expenses is an important step towards strengthening and sustaining Marisa’s business,” says João Pinheiro Nogueira Batista, CEO of Marisa.
Marissa’s crisis comes on the heels of that of other Brazilian retail giants, such as Americana, Talk and Stock. Gustavo Gomez, an economist who specializes in financial markets and variable income, believes the roots of the corporate problem are similar. Five years ago, we had a very high investment in retail businesses. The availability of capital was much easier. The interest was much lower. Since then, those debts have started to be collected, and as interest rates go up, we’re seeing spreads become increasingly tight. So that debt becomes more expensive and profit starts to fall,” he explains.
With companies facing financial difficulties, banks see it more difficult to receive debt installments and avoid renegotiating with these companies. “That’s basically what happened to Marissa. The banks see if they have any viability, if the company will really be able to pay off their debts. They took out some loans which undermined the credibility of the banks. And after what happened with Americana, the banks go on the defensive and protect herself more and more,” he adds.
(with Alexandre Nascimento)
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