A São Paulo business court has approved a judicial reorganization request from Kitchens, a maker of high-end custom furniture, as the group seeks to restructure R$299.9 million in debts. The decision was issued on Tuesday, November 3, according to the information provided in the ruling report.
Judge Ralpho Waldo de Barros Monteiro Filho identified a R$49.4 million discrepancy in the accounts of the group’s four companies. The decision said that, as of February 28, 2026, obligations to companies within the group totaled R$115.2 million, while loans receivable from related companies amounted to R$65.8 million. The judge said the difference had no identified counterpart in the other companies’ accounts and gave the group 15 days to clarify the figures.
The ruling also described money moving between the companies without clear accounting explanations. One company, 6S, transferred R$4.3 million to Kitchens Empreendimentos and R$539,100 to Kitchens Indústria, while receiving R$3.1 million from a foreign-exchange brokerage. In another transaction, R$149,400 in receivables belonging to Kitchens Indústria went to the account of a home-decoration company that owed R$834,200 to Banco Sofisa.
The judge said the transfers made it difficult to establish which company owed money to which, supporting the treatment of the four businesses as a single debtor. The decision did not accuse the group of fraud. Kitchens said the court had recognized that the legal requirements for reorganization were met, as well as the companies’ interdependence, including cross-guarantees and financial transactions between them. The group said it would work on a recovery plan that takes particular account of customers and employees.
The four companies have 60 days from publication of the decision to submit a single reorganization plan, or they could face bankruptcy. The court also suspended for 180 days lawsuits and enforcement actions over debts covered by the process, and appointed Brizola e Japur Administração Judicial to oversee the group’s activities.
Kitchens has a factory in Guarulhos, in the Greater São Paulo area. At the beginning of 2026, it had ten company-owned stores and six franchises, though some outlets have closed, including a showroom in Fortaleza. The group’s financial difficulties have affected deliveries and led customers to seek contract cancellations and refunds through the courts. At least three consumers filed police reports against the group alleging fraud.
The company, founded in 1964, sells custom kitchens as well as bedroom and bathroom products. Its stores are located in cities including São Paulo, Rio de Janeiro, Brasília, Belo Horizonte, Fortaleza, Salvador, Balneário Camboriú, Cuiabá and Goiânia.
Sources: Folha Mercado.