The company reaffirmed its strategy of granting autonomy to its regional divisions, which it implemented in February.
The agricultural input retailer Agrogalaxy, currently undergoing judicial recovery, informed the press that its teams will continue to support customers until the harvest and receipt of supplies in regions where stores have been closed.
Former Agrogalaxy customers, speaking anonymously, mentioned that they were in talks with local distributors to determine how they would receive products purchased before the judicial recovery order was granted on October 1.
When questioned about its market relations, Agrogalaxy stated in a note last week that teams are actively supporting customers until the harvest and receipt of supplies in areas where stores were closed.
“In other regions, operations remain unchanged; we continue distributing industry products to small and medium-sized clients, providing consultative support,” the company stated.
The company also emphasized its ongoing strategy, adopted in February, of granting greater autonomy to its regional divisions, despite having halved the number of stores and dissolved some divisions.
“The decentralization strategy, which increased regional autonomy, has proven effective since its implementation in February,” the company noted.
Agrogalaxy reduced its regional divisions from five to three (South, West, and Central North) as part of its operational redesign to consolidate the remaining stores. The closed stores are currently in the process of redistributing stock and assets to active branches, all of which are rented.
- Regional Adjustments:
- The South division now includes Campos Gerais (PR) and the state of São Paulo.
- The Cerrado East (now West) division has incorporated Minas Gerais.
- The Cerrado West (now Central North) division remains the same, operating in Mato Grosso and Rondônia.
“These are all regions with lower climatic risk and high potential for expansion and profitability,” the company stated.
Suppliers
Since the announcement of the judicial recovery request, the company noted that it has maintained “constructive dialogue with our suppliers.”
“Most suppliers have shown understanding, reinforcing the importance of Agrogalaxy as a retail channel for distributing inputs to small and medium producers. We have a positive outlook regarding the product mix that forms our current strategy,” the company stated.
Layoffs and Hiring Freeze
After laying off approximately 550 employees in October, the company announced a temporary hiring freeze, stating that main adjustments have been made, with no further layoffs expected.
“Although we sought the protection of judicial recovery to renegotiate and organize our financial obligations, we made a social effort to avoid these adjustments before filing for judicial recovery, ensuring that all labor rights for affected employees were upheld without compromising the company’s cash flow,” Agrogalaxy stated.
Debts and Financial Report Delays
Among creditors, doubts are growing regarding debt restructuring, especially after Agrogalaxy postponed the release of its third-quarter financial results.
The company rescheduled the release of its third-quarter report from November 13 to December 19. This delay is legally permitted, as the company is under judicial supervision from court-appointed administrators in the Goiás State Court where the recovery process is ongoing.
“This delay is solely due to internal restructuring, particularly after the recent judicial recovery filing, which has temporarily reduced the workforce involved in data collection and consolidation, significantly increased external audit demands, and added other tasks related to the judicial recovery process,” the company stated in a communication to the Brazilian Securities and Exchange Commission (CVM).
