The SouthRock group, which controls Starbucks Brazil, lost the right to use the brand in the country due to delays in payment as stipulated in the licensing agreement.

The notification of license termination arrived on October 13th, amid renegotiations of the contract, jeopardizing the activities of the SouthRock group, which also controls Subway and Eataly in the country.

SouthRock stated in a press release that they continue to operate the Starbucks brand in Brazil. "Alignments regarding licenses are part of the judicial recovery process," they said. The company believes they have not lost the license.

On Wednesday (1st), Judge Leonardo Fernandes dos Santos from the 1st Bankruptcy Court in São Paulo denied the urgent relief request made by SouthRock to suspend the termination of the licensing agreement. The company stated that they will appeal.

According to the petition submitted to the court, the coffee chain's gross revenue is R$50 million and "represents a highly significant portion of the consolidated cash flow" of the group.

If the license suspension is upheld, the investment fund argues, "the SouthRock Group will experience a true strangulation of its cash flow.