The collapse of a SUPERMARKET, an opponent of Carrefour

An intense rivalry in the retail sector: Discover why a well-known supermarket faced bankruptcy due to astronomical debts and fierce competition.

In the dynamic retail scenario, competition between supermarket chains is fierce, marked by marketing strategies, competitive prices and the incessant quest to gain and maintain customer trust.

One of the states where this rivalry reached its peak was Mato Grosso, which saw two giants fiercely compete for consumer preference: Carrefour and a rival supermarket, which, until recently, was standing as an equally reliable option.

However, an unexpected turn of events shook the structures of this competitive scenario, with the supermarket in question declaring bankruptcy due to a debt that reached astronomical proportions. Curious to know what happened? So, keep reading.

The financial collapse of a large supermarket: Find out how fierce competition and million-dollar debt led to its decline. (Photo: Pixabay).

Carrefour’s opponent goes bankrupt

Supermercado Cascalinho, for a long time, was a familiar name for the inhabitants of Mato Grosso. Its history as one of the region’s leading retailers dates back to years of established trust between customers and the brand.

It was a place where families did their daily shopping, trusting in the quality and variety of products offered. Furthermore, this supermarket stood out for directly rivaling the giant in the sector, Carrefour, establishing competition that went far beyond store shelves.

Also know: ATTENTION! Find out what the supermarket DOESN’T want you to know about the DISCOUNT CLUB

What happened?

However, in July 2023, the news of Supermercado Cascalinho’s bankruptcy shocked the local community.

The 4th Civil Court of Rondonópolis, located 216 km from Cuiabá, officially decreed the end of this institution, which for so long was an essential part of the daily lives of many.

The reason behind this decision was a worrying debt that had accumulated, totaling an impressive R$2.8 million.

The Judicial Recovery process and the turnaround

The situation at Supermercado Cascalinho had been in decline for some time, leading the company to seek a solution through a judicial recovery process that began in 2019.

Initially, there was hope that the company could overcome its financial challenges and move forward.

However, the recovery process was not successful, with allegations that the plan was not being implemented as intended.

As a result, the establishment itself ended up requesting its own bankruptcy. The Judiciary accepted this request based on the finding that the viability of recovery no longer existed.

The decision to declare bankruptcy temporarily suspended collection proceedings against Supermercado Cascalinho, except for those that still need to determine the exact value of the debts.

Issues related to labor debts will be referred to the Labor Court.

Fierce competition and default

One of the factors that contributed to the financial collapse of Supermercado Cascalinho was the intensification of competition in 2018.

At the time, a new supermarket opened its doors in the region, offering offers and promotions with prices substantially below the cost of the products.

This tactic triggered a price war between the city’s supermarkets, which, in pursuit of customers, drastically reduced their profit margins.

Supermercado Cascalinho, although it made efforts to keep up with this competition, was unable to compete as aggressively as its rivals.

Furthermore, the company also faced challenges related to customer defaults, especially those affected by a supposed "crisis".

The drop in sales and the difficulty in receiving payments made it increasingly difficult for the company to meet its financial obligations, contributing to the collapse that culminated in its bankruptcy.

The future and impact on the community

The story of Supermercado Cascalinho serves as a reminder of the complexities of the business world.

Fierce competition, tight profit margins and economic challenges can combine to create difficult circumstances, even for companies that were once leaders in their industry.

Now, it's up to Carrefour to take advantage of the opportunity to win over customers looking for a new, reliable place for their daily shopping.

Finally, the collapse of Supermercado Cascalinho is a lesson in the importance of adaptation and effective financial management in the constantly changing business world.

Read more: HUNDREDS of open positions in a supermarket chain: salaries of up to R$3.5 THOUSAND, sign up

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