Chilli Beans has launched an out-of-court restructuring to renegotiate R$340 million owed to banks and other financial institutions, framing the move as a response to the sharp change in borrowing costs since the pandemic. Founder and chief executive Caito Maia said the company took on debt at annual rates of 2% to 3% during that period, but that costs have since climbed to about 20%.¹

The company’s position is that the process is targeted rather than a wholesale retreat. The R$340 million plan excludes obligations to suppliers, employees and commercial partners, according to accounts of the restructuring, with the stated aim of keeping stores operating and franchisees supported.¹ Chilli Beans has also brought in restructuring executive André Dela Togna as vice-president, allowing Maia to focus more on customers and franchisees.²

That operational emphasis contrasts with the financial warning signs described in the broader reporting. Documents cited before the filing put gross debt at R$216 million in 2023 and R$290 million in 2024, while an unconfirmed report suggested it may have reached roughly R$600 million by the end of 2025.² The company’s holding group also missed debt installments in July and August 2026 totaling R$16.5 million, prompting a demand for early repayment of about R$89 million before creditors paused its effects to allow talks to continue.²

Both the company and outside analysts see continued trading as central to the outcome, but they differ in emphasis. Maia has described a difficult retail environment while insisting the business emerged “stronger and more aware of what we represent” to consumers and partners.² Consultant Alexandre Temerloglou, meanwhile, argued that a strong retail brand can aid a recovery, but said the real test will be maintaining operations, product availability and sales volumes.²

Despite the debt negotiations, Chilli Beans says it still expects 10% growth in 2026, supported by product launches and fashion partnerships.¹