Starbucks receives second eviction notice in a week; debt is almost R$110 thousand

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The court ordered that the coffee shop leave Minas Shopping, in the União neighborhood, in the Northeast region of Belo Horizonte, within 15 days. Starbucks store in Minas Shopping, in Belo Horizonte Starbucks Brazil/Disclosure Starbucks received, this week, the second court order of eviction for non-payment of rent in shopping malls in Belo Horizonte. On October 31st of this year, the company SouthRock Capital – which controls the coffee shop in Brazil – filed for judicial recovery. This time, the judge of the 27th Civil Court, Cassio Azevedo Fontenelle, ordered that the coffee shop leave, within a maximum period of 15 days, the Minas Shopping store, in the União neighborhood, in the Northeast region of the capital of Minas Gerais. The sentence is this Tuesday (28) and the document indicates a debt of R$ 109,804.49. Fontenelle also ordered that the landlord’s late rent, fines, contractual penalties, interest and attorney’s fees be paid by Starbucks. Minas Shopping reported that it “does not comment on actions pending in court”. g1 Minas also contacted SouthRock Capital and is awaiting a response. Eviction of Starbucks from Boulevard Shopping The Starbucks store at Boulevard Shopping, in Belo Horizonte Starbucks Brazil/Disclosure This Monday (27), judge Eduardo Veloso Lago, from the 25th Civil Court of the District of Belo Horizonte, ordered the eviction of Starbucks of the rented store at Boulevard Shopping, in the Santa Efigênia neighborhood, in the Central-South Region of BH. The reason, according to the court order, is also the lack of payment of three months’ rent and, in the decision, Lago gave the café a period of 15 days to vacate the property, starting from this Monday (27), the date of the issuance of the sentence. Judicial recovery The company SouthRock Capital filed for judicial recovery on October 31st of this year. The company manages operations for Starbucks and Eataly, via licensing and franchising, in Brazil. The document was filed by the firm Thomaz Bastos, Waisberg, Kurzweil Advogados at the 1st Bankruptcy and Judicial Recovery Court of São Paulo. The registered debt is R$1.8 billion. The company justified the request due to: low level of trust; high instability in the country; as well as interest rate volatility – the market expects the Central Bank to lower the Selic rate to 12.25% per year this Wednesday (1st) –; and constant exchange rate variations, “which unbalance the market and hit Brazilian entrepreneurs hard”. Furthermore, the economic crisis and the period of the Covid-19 pandemic lowered the company’s profits. In 2020, SouthRock had a 95% drop in sales, in addition to its commercial partners defaulting (when they are unable to pay their debts). In 2021, the drop was 70%; 2022, 30%. READ ALSO: Starbucks has 15 days to leave shopping malls in BH; eviction was ordered by the courts Will Starbucks close? How much is the debt? See questions and answers about the brand crisis in Brazil Parent company of Starbucks and Eataly files for judicial recovery Most watched videos on g1 Minas

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