Bankruptcy: Rival Garoto Ends, Million Dollar Auction Confirmed
After selling its iconic factory Cacau Show, the famous chocolate company, Garrot’s rivalawaits a bitter turn in its centuries-old history after a bankruptcy decree that caught everyone by surprise.
In accordance with G1a court in São Paulo declared bankruptcy of a traditional manufacturer, ordering the auction of its valuable brand to pay off debts accumulated over the years.
Auction of millionaires

The assessment of the brand was given by an examination under the supervision of the judge who determined the bankruptcy Chocolate candies in impressive R$ 27.5 million. This price will serve as the basis for the long-awaited auction.
The auction of the brand is aimed at paying off the creditors of the Chocolates Pan company, which was officially declared bankrupt at the end of February. According to the examination, the profit potential of the brand is estimated at R$51 million over the next five years.
Additionally, based on PAN’s consolidated track record and industry information, a royalty rate of 5% could yield over R$2.1 million by 2028 if licensed.
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Bankruptcy declared by the Central Bank: Farewell to two banks in Brazil after moving millions
The process that ended in the bankruptcy of Chocolates Pan began with its request for judicial foreclosure in 2020. Judge Marcelo do Amaral Perino based his decision on the company’s persistent failure to pay state taxes for more than two decades, making it a successor.
Debt
According to the State Attorney General’s Office, Chocolates Pan has accumulated more than The debt is R$ 126 millionwith R$125 million representing ICMS debts recognized by the company itself.
Falling revenue, restructuring in 2017 and subsequent cutbacks during the Covid-19 pandemic contributed to the consolidated company’s disappointing market performance.
Controversial Chocolate ‘Cigarettes’

Chocolates Pan’ has built a solid reputation throughout its 85-year history, winning the hearts of consumers with iconic products such as the famous chocolate coins, chocolate pencils and the controversial chocolate cigarettes, which are considered the company’s most traditional products.
What are the biggest chocolate factories in Brazil?
- Cocoa Show: Cacau Show is one of the largest and most famous chocolate producers in Brazil. Founded in 1988, the company distinguished itself by offering a variety of chocolate products, including truffles, pralines and chocolate bars.
- Nestle: Nestlé is a giant in the food industry and produces a wide range of products, including chocolates. It has been operating in Brazil for many years and is known for its chocolate brands such as Garoto and Nestlé.
- Lacta (Mondelez International): Lacta is an iconic chocolate brand owned by Mondelez International, one of the largest food companies in the world. Popular chocolates such as Bis, Sonho de Valsa and Laka are produced here.
- Boy (Nestlé): Garoto is one of the most traditional chocolate brands in Brazil and was acquired by Nestlé. It is known for its products such as Baton, Serenata de Amor and the famous Caixa Amarela.
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