Casas Bahia Faces Eviction Lawsuit Over BRL 4.3 Million Unpaid Rent

The legal battle over unpaid rent between one of Brazil’s largest retail giants and a major real estate investment trust has escalated to the courts, highlighting the growing friction between struggling retailers and property owners. On October 8, 2026, the real estate investment trust HSI Logística (HSLG11) filed an eviction lawsuit against Grupo Casas Bahia S.A. over BRL 4.3 million ($780,000) in unpaid rent for September.

The dispute centers on two massive, modern logistics distribution hubs located in Contagem, in the southeastern state of Minas Gerais, and São José dos Pinhais, in the southern state of Paraná. Together, these facilities span over 166,000 square meters. For a foreign observer, these locations are the physical backbone of Brazilian e-commerce, linking industrial hubs to millions of consumers. Ironically, Casas Bahia had previously designated both distribution centers as "essential" to its survival in its court filings.

This legal clash is a direct consequence of Casas Bahia’s broader financial collapse. In August 2026, the household retail chain—famous for selling appliances and furniture on installment plans to working-class Brazilians—filed for judicial recovery, Brazil’s equivalent to Chapter 11 bankruptcy protection, to restructure BRL 17.3 billion in debt. While a São Paulo bankruptcy court granted the retailer a 180-day stay to protect it from past creditors, HSI Logística argues that the unpaid September rent is a post-filing, "extra-judicial" debt. Under Brazilian bankruptcy law, operational expenses incurred after a judicial recovery petition is filed are not protected by the stay and must be paid immediately.

The aggressive move by HSI Logística reflects a broader trend among Brazilian real estate investment trusts (known locally as FIIs). Faced with mounting pressure from their own retail investors to maintain monthly dividend payouts, these trusts are increasingly unwilling to absorb the cash-flow disruptions of tenant restructurings. Casas Bahia represents roughly 31% of HSI Logística's total contracted rental revenue. The fund stated in its market disclosure on October 9, 2026, that the eviction filing was necessary to protect its shareowners, though it remains open to out-of-court settlements.

The outcome of the lawsuit will serve as a critical test of property rights versus bankruptcy protections in Brazil's judicial system. If the court grants the eviction, Casas Bahia could lose vital distribution hubs, severely crippling its ability to fulfill online orders and deliver products. Conversely, if the court shields the retailer, it could signal to international and domestic real estate investors that lease contracts in Brazil carry heightened legal uncertainty during corporate restructurings.

What it touches

The legal dispute directly impacts the real estate investment trust HSI Logística (B3: HSLG11), whose rental revenue and subsequent dividend distributions are highly exposed to Casas Bahia. It also pressures the shares of Grupo Casas Bahia S.A. (B3: BHIA3), which are already trading at historic lows following its August bankruptcy filing.