Ricardo Eletro Reinvents Itself, Returns to the Market with a New Name, Promises Jobs, and Aims to Open 50 Stores

The Return Of The Former Ricardo Eletro Is Here. The Retailer Is Now Called Nossa Eletro And Will Have 50 New Stores By 2024.

The retailer Ricardo Eletro is now called “Nossa Eletro” and has recently inaugurated its first two units in Minas Gerais. The return of the former Ricardo Eletro comes after the company managed to reverse its bankruptcy in court and now aims to open between 18 and 20 units by the end of this year, reaching a total of 50 stores by 2024.

Initiative Promises To Generate Over 30 Thousand New Jobs

The movement comes after the “extinction” of the former Ricardo Eletro network, which was spread throughout Brazil with over 400 points of sale and at its peak generated approximately R$ 10 billion in annual revenue while employing 30,000 people, currently comprising about 100 employees.

According to Pedro Bianchi, CEO of the retailer, the company is rebuilding the business and has already opened two stores, with expectations for three more to be opened in April. All stores planned for this year will be located in the state of Minas Gerais.

The expansion of the new company network will be supported by the unblocking of funds that had been sold by the court and through the sale of assets. The executive from the former Ricardo Eletro criticizes the increased cost of credit due to high-interest rates in the country, with the Special System for Settlement and Custody (Selic) at 13.75% per year.

Bianchi emphasizes that the Central Bank is acting incorrectly regarding interest rates. There is no reason to have the highest interest rates in the world. Inflation is not demand-driven, and these high rates are heavily penalizing retailers who rely on credit. What happened with Americanas was detrimental to everyone, as banks are currently afraid to lend to retailers.

Ricardo Eletro’s Debt Is Estimated At R$ 3 Billion

The CEO of the company reports that the company’s debt is currently estimated at approximately R$ 3 billion. Bianchi is also negotiating with the Attorney General’s Office to settle a liability of over R$ 1.2 billion. It is a complex negotiation, as it involves the payment of cash and company assets, but the goal is to settle all these liabilities.

Bianchi emphasizes that he is not the one who incurred this debt, but he plans to resolve it, bringing back the Ricardo Eletro brand, and will be involved in operations after the acquisition of Máquina de Vendas by private equity fund Starboard in 2019.

The CEO states that after the company’s request for judicial recovery in 2020, he was bombarded with lawsuits that impacted his personal life, but he insists that he is not considering giving up the operation.

It was necessary to tighten the belt, even in his personal life, as he had to make several adjustments in his life, Bianchi adds, stating that he is facing numerous labor lawsuits that are not even his responsibility.

Understand The Reason For The New Identity Of Ricardo Eletro

The new identity is a way to present a more collective image for the company, thus removing the perception that the retailer belonged to a single individual and fostering this sense of collectivity.

The main reason, however, may not be this. The foundation of the new brand represents a chance to “disconnect” from the image of its former owner, businessman Ricardo Nunes, who sold his stake in the former conglomerate in 2019.

Founder of Ricardo Eletro, Nunes was convicted for active corruption in 2011 for bribing a Federal Revenue auditor and was arrested alongside his daughter in 2020 on charges of evading R$ 400 million in taxes.

Source: Veja