The Regional Business Court of Caxias do Sul (a branch of the Judiciary) authorized Zimmer Meatpacker’s request for judicial recovery. The company, founded 53 years ago and headquartered in Parobé (Rio Grande do Sul), included in the process its Capão do Leão plant. Both facilities are authorized to continue operating during the restructuring.
With debts totaling R$ 75 million, the company attributes the crisis to the high cost of cattle, shrinking margins, rising credit costs, and high interest rates. About 90% of its sales are concentrated in Rio Grande do Sul. Cattle producers —among the most affected— have expressed uncertainty over pending payments for livestock already delivered.
In a note signed by director André Zimmer, the company stated that all credits —including those owed to rural suppliers— are temporarily suspended and will be paid according to the judicial recovery plan established under Law 11.101/05. The meatpacker dismissed 95 workers but still maintains about 350 direct jobs. Former employees and suppliers held a demonstration demanding clarity about payments. Management stressed that the objective of the process is to restructure operations and guarantee compliance with commitments to employees and producers while ensuring continuity of activities, Pecuaria reported.
