Subway, from the same group as Starbucks, is seeking judicial recovery of debts amounting to 482 million reais

The snack chain was dropped from the Starbucks lawsuit by court decision late last year; owner of the brand in the USA informed the SouthRock group after a change in negotiations with creditors

The snack bar chain Meter entered, Monday 11th, with a request for judicial recovery at the Court of San Paolo. The company is operated in Brazil by SouthRock, also the operator of the brands Starbucks, Eataly, TGI Fridays and Brasil Airport Restaurantes (Bars). Starbucks’ judicial recovery request was accepted by the courts late last year, but Subway was excluded from the process in December 2023.

According to the request presented this week, at the 1st Bankruptcy and Judicial Recovery Court of the Central Forum of the District of São Paulo, to which the Estadao accessed, the company’s debts reach R $ 482 million.

In the proceedings, SouthRock specifies that the exclusion of Subway, at the time of Starbucks’ recovery request, considered “the collaborative attitude adopted until then by a significant part of the financial creditors”. This scenario, however, ended up changing over the months.

The company reports that a small group of creditors “considered it appropriate to interrupt the productive and friendly negotiations and talks that had taken place up to then and, unexpectedly, began to pursue, in a forced and unilateral way, the immediate satisfaction of their credits”.

Given the change in negotiations with creditors, according to the document, the owner of the brand in the United States would have notified the SouthRock group, which would now culminate in the request for recovery of the network in Brazil.

“In other words: given the emerging need to avail themselves of their request for judicial recovery, the appellants now present this request in reliance on the SouthRock judicial recovery with the aim of mitigating the risk that conflicting decisions are taken which procedurally and legally destabilize the expected financial recovery of companies belonging to the SouthRock group in both judicial recovery requests”, states the network’s defense.

Source: Terra

Rose

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