Brazilian publishers seek to intervene to save leading retailers from closure
Brazilian publishers are meeting this week to discuss how they might prevent the country’s two largest retailers from closure, reports Publishing Perspectives.
The National Syndicate of Book Publishers (SNEl) will discuss how it might assist the two main sales channels in the country, Livraria Cultura and Saraiva, which together represent almost 40% of the revenues of some publishers, and are said to have more than 100 retail locations between them.
Sariava, the largest Brazilian book retailer, has a debt of more than 485 million reais (A$177.6m), in addition to 120 million reais (A$43.9m) in credit lines with banks, and has recently closed 20 stores.
A court has already accepted Cultura’s request for ‘judicial recovery’, a legal process whereby an unpaid debt is referred to a court in order to recover it, with the process due to start next month. Cultura’s debt is 92 million reals (A$33.7m) atop previous outstanding debs of 285 million reais (A$104.4m).
‘Publishers are already the real “bank” of the market, as they make all their payments upfront,’ said managing director of Metabooks Brasil Ricardo Costa. ‘It’s important to know that the basis for the book market in Brazil is the consignment system. And that makes publishers invest even more to keep the business running. I don’t know how long publishers can actually keep Cultura and Saraiva going. Here, we’re crossing our fingers that the bookstores find a solution together with the publishers and other suppliers, and that they become stronger, taking the book business in Brazil to a better situation.’
Category: International news