In crisis, Livraria Cultura files for bankruptcy

In crisis, Livraria Cultura files for bankruptcy

Living its biggest crisis, Livraria Cultura entered this Wednesday (24) with a request for judicial reorganization.

In a statement to the market, Livraria Cultura stated: “With this measure we aim to normalize, in a short period of time, commitments made with our suppliers, preserving the health of the company created by Eva Herz in 1947, maintaining jobs and generating more stimulus for grow up”.

The idea is to work “more aggressively on digital channels”. At the same time, according to the text, it is proposed to “keep few, but great physical stores across the country”.

In the past few months, Livraria Cultura has stopped paying its suppliers, or delaying payments. When he was able to negotiate longer terms with publishers, he was unable to comply with the agreements. It is said that recently the company even offered electronics sold in the store as a form of payment. Some publishers have even suspended the supply of books to Cultura to avoid further losses.

Read the Livraria Cultura statement in full:

“The uncertainties of the Brazilian economic scenario and, within it, the crisis in the publishing market, which has shrunk by 40% since 2014, has led Livraria Cultura to face difficulties, too. Unfortunately, after four years of recession, the general scenario in the country shows no clear signs of improvement.

In light of this, Livraria Cultura started a tough adjustment program three months ago: we eliminated low-result stores; we resized the staff; we cut all expenses; we did a thorough review of the short and medium term planning.

We also opted for the judicial recovery of Livraria Cultura, whose request is being submitted today to Organs competent bodies. With this measure, we aim to normalize, in a short period of time, commitments made with our suppliers, preserving the health of the company created by Eva Herz in 1947, maintaining jobs and generating more stimulus to grow.

We are now a leaner, more efficient company, prepared to face the challenges of retail in the e-commerce era. We want to act aggressively on digital channels and, at the same time, we will maintain few, but great physical stores across the country. We are 100% attuned to the idea that they, our stores, don’t just sell products and services. They sell experiences that transform the customer’s life.

We are confident: we believe that Livraria Cultura started the next 70 years. ”

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