Brazil’s Firms Close Stores, Delay Earnings as Virus Spreads

Brazilian Firms Close Stores, Delay Earnings as Virus Spreads

Felipe Marques

22 Mar 2020, 06:28 AM IST

(Bloomberg) --

Brazilian companies are feeling the impact of the coronavirus pandemic in Latin America’s largest nation, which has a precarious health system to deal with the infection.

The country had 1,128 confirmed cases and 18 deaths as of Saturday, authorities said. Its biggest state, Sao Paulo, declared a 15-day quarantine starting next week to try to slow the advance of Covid-19.

Here’s a summary of the latest measures taken by large companies:

Clothing retailers

Clothing retailer Marisa Lojas SA will close its stores in Brazil starting March 22, according to a filing. The company had 354 sites at the end of 2019. C&A Brasil, another fashion retailer, said in an emailed statement it will do the same at its more than 280 stores.

Via Varejo

Electronics and appliances retailer Via Varejo SA also announced that starting Saturday, its stores will be closed, according to a filing. The company has 1,061 stores around the nation, according to its website, including both Casas Bahia and Ponto Frio stores.

Burger King

Brazil’s Burger King and Popeyes restaurants will only take orders for pick-up or delivery starting March 23, BK Brasil Operacao e Assessoria a Restaurantes SA, the company that operates about 900 of the outlets, said in a filing.

Bloomin’ Brands, the operator of Outback Steakhouse and Abbraccio restaurants, announced a similar measure, according to an emailed statement.

Eletrobras

The firm is delaying the release of fourth quarter earnings to March 27 and it canceled an investor meeting.

More Mall Closures

Mall operator Iguatemi said it would be shutting down another four venues in Sao Paulo state until April 30.

JBS

Beef giant JBS SA was ordered on Friday by a labor judge to shut down two factories in Brazil, citing virus concerns, according to a March 20 court filing. On Saturday, the company said in an emailed statement it had managed to overturn the decision and added it has a “firm intention of not compromising the production and supply of quality food, an essential activity that is even more necessary across the country at this time.”