Shares in Brazilian retailer Americanas SA plummeted more than 75% on Thursday after its chief executive resigned citing the discovery of 'accounting inconsistencies' totaling 20 billion reais ($3.9 billion).
Outgoing CEO Sergio Rial, who replaced Miguel Gutierrez less than two weeks ago, said in a conference call with investors he had "clearly found some very important distortions" and signs of a lack of transparency from the previous management.
Rial, the former head of Banco Santander's Brazilian arm , attributed the inconsistencies to differences in accounting for the financial cost of bank loans and debt with suppliers. put their recommendations on the firm under review, while Brazil's securities regulator CVM said it had started two probes into the retailer to investigate the issues.
"That was something we had never seen with retail companies, which tend to be very predictable in terms of economic cycles, so we detected some irregularities," Gulbrandsen said. "The call with Rial confused more than it helped," said a Brazilian fund manager who spoke on condition of anonymity. "It provided a clue but it's still hard to understand how deep this hole is. We'll need more time and information."
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