The CEO of Pão de Açúcar, Alexandre Santoro, announced that debt and contract renegotiation is now the company's top priority. This statement comes in light of the company's ongoing structural changes and the need for decisions that are aligned with its operational reality. Pão de Açúcar, Brazil's fifth-largest grocery retail chain, is navigating through these changes as it faces significant financial strain.

In the most recent quarterly balance sheet released after market closure, the company reported a R$ 1.2 billion deficit in net working capital as of December 31, 2025. This financial shortfall is primarily attributed to loans and debentures maturing in 2026, amounting to R$ 1.7 billion. The financial report raises serious concerns regarding the company's future operational viability, stating that there is a 'relevant uncertainty' which may significantly impact its continuity.

Despite incurring a net loss of R$ 572 million in the fourth quarter, a 48.2% decrease comparing to the prior year, the company's performance fell above market expectations. This situation illustrates both the operational challenges facing Pão de Açúcar and the complexities of navigating a financing landscape that is fraught with uncertainties. The focus on renegotiating debts comes as a crucial step for the company aiming to stabilize its financial health moving forward.