A Cultura Bookstore is a chain of bookstores founded in São Paulo in 1948. It is known for its wide selection of books, CDs, DVDs and other cultural products, including stationery, toys and home decor. However, the traditional Livraria Cultura had its end decreed due to several debts. Check out more about it in this text we prepared.
Bankruptcy is decreed by the court
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The company's bankruptcy was issued by Judge Ralpho Barros Monteiro, of the 2nd Bankruptcy and Judicial Recovery Court of São Paulo, last Thursday, 9. In 2018, fearing being targeted by the decree, the company even filed for bankruptcy protection.
However, at the time, Livraria Cultura's debt was around R$ 285 million. After the pandemic, the scenario worsened and the company failed to comply with the judicial recovery plan approved by its creditors. In addition, the company was not up to date with labor debts.
After all, why do companies go bankrupt?
The main reasons why companies fail are:
- Lack of demand: If the demand for a product or service decreases, the company may find it difficult to sell its products and maintain its profitability;
- Excessive competition: If there are many competitors offering similar products, the company may find it difficult to stay in the market;
- Inadequate management: Inadequate management, including financial or planning errors, can lead to bankruptcy;
- Excessive debt: If a company has a lot of debt, it can be difficult for it to cover its expenses and pay its debts.
In the case of Livraria Cultura, production costs and low demand for books were some of the reasons why the company accumulated debts during that time. However, bookstores in general in Brazil are going through a delicate moment in the market.
In the city of São Paulo, Livraria Cultura is located in Conjunto Nacional, on Avenida Paulista. There is a second unit in Porto Alegre (RS).
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