The court deadline for Starbucks to leave its store in a shopping center in Minas state has expired

The court deadline for Starbucks to leave its store in a shopping center in Minas state has expired

The deadline set by the court for Starbucks to vacate the rented store at Boulevard Shopping, located in Bairro Santa Efigenia, eastern region of Belo Horizonte, expires this Wednesday (12/13). The decision issued by Judge Eduardo Veloso Lago, of the 25th Civil Court of the District of Belo Horizonte, responds to the request for eviction due to non-payment.

Delays in paying three rents took the mall to court. Initially, they were given a period of 15 days to vacate the place, under penalty of forced eviction.

At the end of October, the company responsible for Starbucks’ operations in Brazil, South Rock, filed for judicial recovery before the First Bankruptcy Court of São Paulo, claiming total debts of R$1.8 billion.

The decision taken on November 27 last year also specified the payment of a deposit in an amount equivalent to three current rents and gave a five-day period to pay it.

The store continues to operate normally, according to the Shopping Boulevard website, but they would not comment on the possibility of eviction due to non-payment.

Read also: The court ordered the evacuation of Starbucks from a shopping center in Bosnia and Herzegovina

In the capital of the state of Minas Gerais, Minas Shopping Malls, in the northeastern region; In Cidade Shopping Centre; One store at Convenience International Airport is closed.

The airport’s press office reported that the stores in the “domestic departure hall and in the lobby in front of Check-in Desk 2 are temporarily suspended, pending technical modifications.”

Starbucks Brazil lost the right to use the trademark in the country due to a delay in payment stipulated in the licensing agreement. The notification arrived on October 13 this year, in the midst of contract renegotiations, putting the group’s activities at risk.

See also  Nubank offers a credit card to passive people; see how

Judicial recovery

The court granted SouthRock’s request for injunctive relief on Tuesday (12/12). This measure, according to the company in a memorandum, allows it to continue “the process of restructuring its operations.”

Judge Leonardo Fernandez dos Santos’ decision did not include the Subway and Eataly brands in the recovery process as requested by the creditors. Brands include Starbucks, TGI Fridays, and Brazil Airport Bar-Restaurants.

A judicial officer is appointed who must inform the company’s status within 10 days and monitor processes and deadlines.

Within 60 days, the company must submit a judicial recovery plan, otherwise bankruptcy proceedings will be opened.

The company claims that it has already begun restructuring its operations with the support of external consultants and that its goal is to protect the brands it represents.

He added in a press release, “The commitments made with its creditors will be respected, after the steps, decisions and legal deadlines for developing the process and approving the judicial recovery plan.”

SouthRock also said that while adjustments are being made, the brands, which the company controls, continue to “operate normally.”

You May Also Like

About the Author: Camelia Kirk

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

Leave a Reply

Your email address will not be published. Required fields are marked *