GPA halved its debt to R$2.1bn with a court-approved plan, then pivoted to operations

On 7 October 2026, São Paulo judge Larissa Tunala approved GPA's out-of-court debt restructuring and rejected objections from creditors including Casas Bahia, who argued the plan improperly grouped claims of different natures. GPA can now shift from legal fights to fixing operations. The plan cuts the Pão de Açúcar owner's R$4.5 billion financial debt to R$2.1 billion, and its shares closed 4.15% higher on the day. Holders of 57.5% of the debt — Itaú Unibanco, HSBC, BTG Pactual, Rabobank and Itaú Asset among them — had approved it in early May, but the challenges stalled it until the ruling.

CEO Alexandre Santoro's overhaul shrinks the company: abandoning uneconomic projects, giving chains regional autonomy over assortments — regionalization started in Rio de Janeiro, then Salvador, Brasília next — and, as manufacturers tightened terms, opening contracts to regional brands. Its 11 distribution centers could shrink to six or eight, with two São Paulo sites merging from January. Extra Mercado gets a more aggressive repositioning built with suppliers, and some Pão de Açúcar stores may convert where customer profiles have shifted.

The repayment offer gives creditors three routes: R$1.5 billion with a two-year grace and staged payments, the largest installment of nearly R$850 million due in 2031; R$2 billion taking a 70% haircut, repayable in 2036 and adjusted by the CDI rate; and R$1.1 billion exchangeable for debentures convertible across 2027–2031. About R$260 million expected from Itaú after the FIC consumer-finance termination goes to first-year debt payments. Gross revenue fell 6.1% to R$9.5 billion in January–September — consultant Admar Corrêa called the decline a deliberate choice of profitability over volume.

Santoro cautioned that the measures require investment and will not deliver immediate financial benefits: 'We're leaner today, but we're going to become even leaner,' with the full impact not reflected in 2026. Most payments due in the coming years must come from GPA's own cash generation; the market considers the burden manageable given the haircut and maturities through 2036, provided the retailer returns to growth. GPA's largest shareholders are now the Coelho Diniz family and investor Silvio Tini, with Casino third.

Financial debt cut from R$4.5bn to R$2.1bn; shares closed 4.15% higher on approval; 57.5% of creditors including Itaú, HSBC and BTG Pactual backed the plan

The out-of-court route halved the debt without a full judicial reorganization, in a market crowded with retailer restructurings.

The plan classifies unsecured claims by objective criteria on due dates — an argument the court accepted over Casas Bahia's 'same nature' objection.

One plan combines three tools: a grace period, a 70% haircut and convertible debentures.

Post-approval the focus shifts to operations: regional assortments, fewer distribution centers and repositioning Extra.

An out-of-court plan that groups creditors by objective criteria can halve debt without judicial reorganization — but approval only buys time; the gain must come from cash generation.

The challenging creditors — Casas Bahia, Cone S.A., Transportadora Sanzaneze e Sanzitrans, Logged Rio and holders of real estate certificates — were given 30 days to pick their repayment options. Santoro says the challenge now is improving execution of operational measures already underway, with restoring revenue growth the first priority after the deliberate volume declines.