Americanas cleans house
Facing multiple investigations after an accounting scandal and filing for bankruptcy protection, giant retailer Americanas has removed its entire executive board. In a note to the market, newly-appointed CFO and investor relations director Camille Loyo Faria said the move was not a rebuke of their leadership of the company.
Why it matters. Embroiled in the biggest accounting scandal in Brazilian history, Americanas still needs to instill some confidence in itself as it tries to negotiate with its more than 8,000 creditors.
Context. The troubled retailer reported “accounting inconsistencies” of roughly BRL 20 billion on January 11. A week later, it filed for bankruptcy protection in both Brazil and the U.S.
- Several securities investigations were opened to look into fraud, and a battle ensued between the company’s top shareholders and its largest creditors.
- Minority investors in Americanas were considering a class-action lawsuit against both the company and PwC, which had recently audited the retailer’s books and failed to find any discrepancies.
Ambev (also) accused of billions in tax debts
Brazilian brewer Ambev was accused of owing billions in taxes for allegedly distorting tax incentives offered to the soft drink sector in the Manaus Duty-Free Zone.
Why it matters. Ambev’s top shareholders are Brazil’s three richest men (Carlos Alberto Sicupira, Jorge Paulo Lemann, and Marcel Telles) — who also happen to be the reference shareholders of Americanas.
What happened. On Wednesday, weekly magazine Veja published a study carried out at the request of an association of beer producers...
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