Brazilian retailer Grupo Toky BMFBOVESPA:TOKY3 said on Monday that a Sao Paulo state court granted the firm's May filing of a bankruptcy protection proceeding, as it grapples with liquidity issues due to high debt and challenging economic conditions.
Grupo Toky operates furniture chain Tok&Stok. The company had said last month that elevated interest rates, high household debt and restrictive credit have hurt sales in Brazil's furniture sector, which prompted its request for restructuring.