Starbucks and Subway operators file for bankruptcy protection

Starbucks and Subway operators file for bankruptcy protection

South Rock says its goal is to “financially protect its operations in Brazil”, amid rising interest rates and inflation

SouthRock Capital — operator of Starbucks, Subway, Eataly, TGI Fridays and Brazil Airports — entered Tuesday night (October 31, 2023) with Request for judicial recovery. According to the First Bankruptcy Court of TJSP (Court of Justice of São Paulo), the group’s debts are estimated at R$1.8 billion.

In a statement to Info Money BusinessThe company informed that the judicial recovery process aims to “Financially protecting your operations in Brazil linked to strategic decisions to adapt your business model to the current economic reality“.

Adjustments include a review of the number of stores in operation, the opening calendar, alignments with suppliers and stakeholders, as well as the workforce as it is currently structured.“South Rock said.

Also according to the operator, “Brazil’s economic challenges resulting from the pandemic, inflation and continued high interest rates have compounded the challenges faced by all retailers, including SouthRock.“.

With the judicial recovery, South Rock plans to “Continue to develop and expand all its brands in Brazil“Retailers must remain operational during the process.

About Southrock

Founded in 2015, SouthRock expands global and local brands. Brazil’s first airport restaurant stores opened in 2017 in airports across the country. In 2018, it began operating the Starbucks coffee chain and snack bar TGI Fridays.

In 2022, he became responsible for franchising the network Fast food Subway, which has more than 1,600 units in Brazil. Thus, it became the largest food and beverage company franchisor in Brazil, according to The company’s website. In the same year, it also entered into a partnership to operate and expand the Italian gastronomic center Eataly.

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About the Author: Camelia Kirk

"Friendly zombie guru. Avid pop culture scholar. Freelance travel geek. Wannabe troublemaker. Coffee specialist."

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