Brazilian drugstore operator Brasil Pharma said on Tuesday a Sao Paulo court judge had approved the bankruptcy request it filed on June 6, when the company warned it could no longer obtain the resources to execute a restructuring plan.
According to a securities filing, the bankruptcy court has named Deloitte Touche Tohmatsu Consultores as judicial administrator of Brasil Pharma’s in-court restructuring and ordered the sale of all of its brands.
Brasil Pharma owns three different drugstore chains: Big Ben, Farmais and Farmacia Sant’anna. Difficulties integrating the chains and a rift among shareholders are among the reasons for its bankruptcy, as well as a high level of debt.
The company is currently controlled by Stigma II LLC, which holds a 94.49% stake and is managed by private equity group Lyon Capital. (Reporting by Gabriela Mello; Editing by Tom Brown)