Três Irmãos furniture manufacturer declared bankrupt in Santa Catarina

A court in Santa Catarina has declared the bankruptcy of the furniture manufacturer Três Irmãos, based in Campo Alegre. The company faces estimated debts of R$ 133 million. The judicial decision follows the failure of a judicial recovery process initiated in 2024, with operations having been halted since May 2026.

The magistrate cited several failures in the recovery process, including unpaid debts to creditors, a lack of accountability regarding R$ 3.25 million from asset sales, and tax irregularities involving state ICMS agreements and the Federal Revenue. The court has ordered the sealing of the main factory and its branches. The judicial administrator, Recupere, will manage the inventory and assets for future auctions.

The bankruptcy occurs amidst challenges in the Santa Catarina furniture sector, which has been impacted by rising logistics costs, increased prices for raw materials like MDF and varnish, and a 27.7% reduction in regional furniture exports in 2023.