Two stores in a shopping mall, a competitor to Riachuelo’s, are struggling to survive

Two stores in a shopping mall, a competitor to Riachuelo’s, are struggling to survive

Opening a business is not one of the easiest tasks in the world. This is because a series of situations can lead to the end of a major project. This time we’ll talk about two mall stores, one of which is Riachuelo’s competitor, that are fighting bankruptcy.

In fact, one store closed its doors. We are talking about the bankruptcy of The Brothers Modas LTDA. According to the portal of the Court of Justice of the Federal District and Territories, the judge responsible for the Court of Bankruptcy, Judicial Recovery, Civil Insolvency and Commercial Cases of the Federal District was in charge.

It is worth noting that the ruling was issued in 2018 and specified an inventory of the assets that make up the commercial establishment, the seizure of amounts that may be present in accounts registered in the name of the bankrupt company, and a ban on the trading of cars. Vehicles in the defendant’s name.

Riachuelo’s competitor was filed for bankruptcy by JK Comércio e Material Esportivo LTDA, on 01/30/2017, due to frustrating implementation. At that time, since its location had not been determined, the defendant company was summoned by notice and did not file a defense within the legal time limit. The end of the store left everyone surprised.

What other company is struggling to survive?

Another mall store that was about to close its doors was Forever 21. In 2019, according to El País newspaper, the company was in very bad shape financially and narrowly avoided filing for bankruptcy. In 2022, according to the Exame portal, the store closed all units in Brazil.

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It is worth noting that Forever 21’s problems have an explanation and occurred in recent years. This is mainly due to the advancement of e-commerce. This eventually caused malls and department stores to suffer a decline in visits and sales.