Owners of games like Monopoly, Clue, and Genius, which were sales successes in the 1980s and 1990s, the toy manufacturer Estrela has filed for judicial reorganization. The filing with the court, made in the district of Três Estrelas, in Minas Gerais, was communicated by the company on the morning of Wednesday, May 20th.
The filing for judicial reorganization involves eight companies from the group: Brinquemolde Licenciamento Indústria e Comércio, Catu Comércio de Cosméticos Sociedade Unipessoal, Editora Estrela Cultural, Estrela – Distribuidora de Brinquedos, Comercial, Importadora e Exportadora, JM Comércio e Indústria de Plásticos, Manufatura de Brinquedos Estrela, Starcom do Nordeste Comércio e Indústria de Brinquedos and Starcom Ltda.
The financial market reacted negatively to the toy company's decision. Around 11:35 AM, the company's shares were down 33% on the B3 stock exchange.
The cost impact caused by the interest rate hike was one of the reasons the company presented to justify its request to the court. Today, the Selic rate is set at 14.5%, after a 0.25 percentage point drop at the last meeting of the Monetary Policy Committee (Copom) at the end of April.
Another reason to explain the company's financial problems over the years, according to the company itself, is related to increased competition from digital games, social networks, online challenges, and cheaper imported physical games, mainly from Asia.
The document is signed by Carlos Tilkian, director of investor relations, who is also the company's president and main shareholder.
"The decision to file for bankruptcy protection stems from the need to restructure the liabilities of Grupo Estrela, in a context of significant economic and sectoral pressures, including, among other factors, increased cost of capital and credit restrictions; changes in consumer behavior, with greater competition from digital alternatives; and accumulated impacts over the past few years on the Company's financial structure," the company said in a statement.
In the relevant fact, the company informs that it will present, in the future, without specifying a date, the judicial reorganization plan, which must be submitted to the approval of the creditors. Estrela also does not disclose the total amount of the debt.
According to the company, the decision to file for judicial reorganization does not affect industrial operations or product sales. The company says it has produced more than 26,000 different toys throughout its history. Estrela was founded in June 1937 in São Paulo.
"The company reaffirms its confidence in the regular continuity of its operations, maintaining its industrial, commercial and administrative activities, as well as serving customers, partners and suppliers, adopting the necessary measures to ensure the continuity of its business throughout the restructuring process," the document states.
Estrela's announcement adds to the list of companies that have recently sought legal action to try to rebalance their accounts and avoid bankruptcy. The most recent was the request from Grupo Toky , the result of the merger between Tok&Stok and Mobly, which has accumulated a debt of R$ 1.11 billion.
In its latest publicly released financial statement, covering the fiscal year 2024, the toy manufacturer reported a net loss of R$ 24.26 million, an increase of 11.3% compared to the R$ 21.8 million recorded in the previous year.
In the accumulated total for 2026, ESTR4 shares have registered a depreciation of 38.5%. The company has a market value of R$ 33.4 million.
Contacted by NeoFeed for comment on the bankruptcy filing, Tilkian did not respond.
