Company that manages Starbucks in Brazil files for judicial recovery

SouthRock, the company that manages the Starbucks coffee chain in Brazil, filed for judicial recovery this Tuesday (31).

In a statement sent to the press, SouthRock, which also controls Eataly in Brazil, the TGI Fridays chain, Brazil Airport Restaurants (BAR) and Subway, informs that the request aims to “financially protect some of its operations in Brazil linked strategic decisions to adjust your business model to the current economic reality”. The value of the share is R$1.8 billion.

As justification, the company points to the economic challenges caused by the covid-19 pandemic, inflation and high interest rates, which affected practically all sectors of the country’s economy, including retailers.

According to information published by the newspaper Folha de S.Paulo, the company would have its license to use the coffee shop brand in the country suspended. The company, which maintains that it has not lost permission for use, informs that it continues with Starbucks operations and that the licensing arrangements are part of the judicial recovery process.”

“While these structural adjustments are implemented, all brands will continue to operate and deliver the exclusive products and unique experiences that each of them offers to consumers who visit their stores every day,” the statement added.

Currently, SouthRock has 187 Starbucks stores in the country. Still according to the Folha de S.Paulothe coffee chain’s gross revenue is R$50 million, a figure stated in the request sent to the Court.