In an interview with Bloomberg Línea Brasil, Leonardo Ribeiro Dias, head of our litigation, arbitration and insolvency practice, commented on the request for judicial reorganization by SouthRock Capital, the company that represents Starbucks in Brazil.
On October 13, Starbucks notified SouthRock Capital of the immediate termination of the contracts. And, according to the expert, the decision to file for judicial reorganization is an attempt to reverse this termination, since the brand’s operation in the country represents a significant percentage of its revenue.
“What is most striking about the document is the existence of a notice to terminate the license to use the Starbucks brand and the attempt, via mediation incidental to RJ’s request, to suspend the effects of this termination and allow SouthRock to continue exploiting the brand locally,” noted Leonardo Dias.
However, even if RJ’s request is approved in court, it does not imply a ban on any licenses to use the brand.
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