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Ri Happy has begun negotiations over debts totaling R$ 500 million with approximately ten financial institutions. See!
After recording a deficit of R$ 88 million in 2022, Ri Happy, a renowned toy store chain, began negotiating debts totaling R$ 500 million with around ten banks in July. In this process, the company opted for the consulting services of restructuring specialists Starboard Partners.
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As a result, Ri Happy recently reached an agreement with nine financial institutions and committed to paying off debts amounting to R$ 289 million in installments spread over four (2027) to five years (2028), according to data from Estadão/Broadcast. Additionally, the company will allocate R$ 75 million to ensure the liquidity and supply of its stores during special occasions, such as Children’s Day and Christmas. Learn more!
Ri Happy’s financial condition
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The financial strain faced by Ri Happy was influenced by the decline in consumption in Brazil, exacerbated by the increase in interest rates. The company, in turn, also allocated resources to open new stores, totaling 226 company-owned points of sale at the end of 2022.
Thus, due to the loans obtained to support working capital in 2020 and 2021, during the Covid-19 outbreak, the 2022 financial report showed negative net working capital of R$ 262.4 million in circulation, representing a 52% increase compared with 2021.
Company negotiations
Consequently, Ri Happy's financial commitments involve the following banks:
- Banco do Brasil;
- Santander;
- BV;
- Bradesco;
- Daycoval;
- ABC Brasil;
- Original;
- Caixa Econômica Federal;
- BIB.
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Finally, it is worth noting that the company is also in discussions to adjust debts with shopping centers. Ronaldo Pereira Jr, CEO of Ri Happy, told Estadão/Broadcast that all major groups had already been approached. However, he emphasized that negotiations with shopping centers are common practice in the retail sector.
