Finance Minister Dario Durigan, who oversees Brazil’s Treasury and fiscal policy, denied claims of a crisis in the country’s retail sector during an interview with GloboNews on Friday, even as major department store chain Casas Bahia filed for judicial recovery—a legal process similar to Chapter 11 in the United States that allows a company to restructure debts under court supervision. He highlighted that retail sales grew 2% in the June–July period compared with the previous months.
Durigan acknowledged that individual companies face difficulties, calling it a "drama" for workers' families, but argued that the overall economy shows growth even within retail. He noted that e‑commerce is expanding faster than brick‑and‑mortar stores, a trend reflected in the sector's performance.
The minister pointed to a decline in bankruptcies and judicial recoveries, saying retailers lag behind industry in such filings. He added that Casas Bahia had already undergone an extrajudicial recovery process in the past—a negotiated settlement with creditors outside court—suggesting the current filing is not unprecedented for the company.
When asked about other troubled businesses such as Marabraz, Tok&Stok and the restaurant chain Habib's, Durigan said closures are part of economic transformation and that the state will help where possible without undermining competition or making undue interventions.
He also warned that sectors highly dependent on credit continue to face pressure and reiterated the government's plan to curb public spending as a way to lower interest rates. "We will keep tightening the fiscal framework [rule for spending control] so that we achieve a better fiscal result," he said.
The interview underscores the tension between isolated corporate distress and broader macroeconomic indicators that the government uses to assess the health of the retail market. Analysts may watch whether the 2% growth persists amid rising borrowing costs.