Americanas S.A., one of Brazil’s retail giants, informed the market on Wednesday that it had found “inconsistencies” in its accounting entries. More than mere rounding errors, preliminary analysis indicated that these “inconsistencies” could amount to BRL 20 billion (USD 3.88 billion).
As a result, the company’s chief executive and chief finance officers, Sergio Rial and André Covre, announced their resignation. They had taken office just over a week prior. The company’s board appointed João Guerra, an executive with more than 30 years at the company, to take on both roles on an interim basis.
Americanas also said an independent consultancy firm will reassess its balance sheets and that this work will be closely monitored by a special committee that will have the former CEO, Mr. Rial, as an advisor.
When estimating the size of the error, the company says that it extends to the three quarters of 2022 but does not reveal when it started.
Another statement sent to the company’s suppliers (and to which the newspaper Valor had access) informs something not included in the material fact about the possible effect of inconsistencies on the company’s shareholders’ equity: that there may be “an important adjustment in the structure company’s equity, due to unforeseen...
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