Brazilian Companies Increase Judicial Recovery Filings Amid High Interest Rates

The number of Brazilian companies seeking judicial recovery has risen significantly, driven by high interest rates and restricted credit. According to data from the RGF consultancy, the number of companies in judicial recovery jumped 65.8 percent between the second quarter of 2023 and the second quarter of 2024, increasing from 3,823 to 6,341. The agribusiness sector has been a primary driver of this trend, with a 66 percent increase in filings over the last 12 months ending in the second quarter of 2026. Other sectors seeing increases include transport, logistics, and retail. In the retail sector specifically, 986 companies requested judicial recovery in the second quarter of 2026, a 20 percent increase compared to the same period in 2025. Recent high profile filings include Casas Bahia, Marabraz, and the Toky Group. Experts attribute the surge to the Selic basic interest rate remaining in double digits, which increases the cost of capital and makes it harder for companies to roll over debts. In the agribusiness sector, the crisis is further exacerbated by falling international commodity prices, high input costs, and crop failures caused by weather. In the retail sector, challenges include the shift toward e-commerce and high levels of household debt that limit consumer spending. While center leaning coverage emphasizes the broader macroeconomic impact of interest rates and the specific vulnerability of the agribusiness sector, center left leaning coverage focuses more on the retail crisis and the role of government fiscal spending in pressuring inflation and interest rates.