TNG’s judicial recovery plan is approved

TNG’s creditors approved the judicial reorganization plan with a guarantee to keep the chain’s stores in malls – the company faces eviction actions. The parties are now awaiting the judge’s approval, which should come out in the next few days.

The fashion retailer, one of the sectors most affected by the pandemic, filed for recovery in May last year. The company of Tito Bessa Jr. accumulates around R$ 250 million in debts.

“It was the way we found to make a fresh start from scratch, to fix the plane in mid-flight”, said the businessman, in an interview with the Panel SA column at the time, after the announcement.

According to Moraes Jr Advogados, which represents TNG in the process, the negotiation involves discounts of almost 90% and a grace period of up to two years for the start of payment. There are exceptions depending on the creditor class and the amount receivable.

Employees will receive half of the amounts due within one year after the approval of the plan. For whom TNG owes up to R$3,000, the debt will be paid in full within 90 days.

The main point discussed in the recovery plan was the maintenance of the points in the malls. The fashion chain says that the process will give breath to take advantage of this year’s sales growth.

During the pandemic, TNG closed 70 of its 180 stores and laid off around 730 employees. The brand’s points of sale closed for 150 days in 2020 and for 50 days in 2021, due to restriction measures to avoid contagion by coronavirus.

According to the brand, with more than three decades in the market, despite the strengthening of the online sales channel, in the last two years there has been a drop of at least 30% in its revenue.