06/29/2024 – 16:06
Responsible for Burger King and Popeye’s in Brazil, restaurant operator Zamp stated in a statement to the market that it is considering buying the Subway brand in the country.
Earlier this month, the company had already announced the acquisition of the Starbucks brand for R$120 million. The deal is awaiting approval from the Brazilian Antitrust Authority (CADE) and the signing of definitive contracts with Starbucks Corporation.
+Understand the Subway crisis in Brazil and what happens after a request for judicial recovery
SouthRock, the former operator of the coffee shop chain and Subway in Brazil, had filed for bankruptcy protection for the Starbucks and TGI Friday’s brands at the end of 2023. In March 2024, the company filed a new request, this time focusing specifically on Subway.
Accumulated debts
According to SouthRock, “a small group of creditors decided to interrupt the negotiations and conversations that had been taking place until then and began to pursue, in a forced and unilateral manner, the immediate satisfaction of their credits”.
The request also mentions the problems with Subway Corporation, which terminated its contract with the Brazilian operator in October 2023. SouthRock’s debt with the parent company would reach R$482 million.
SouthRock also states that it was harmed by the closure of restaurants during the pandemic and the inability to obtain new lines of credit.
Subway, however, had already been facing a reduction in its number of open franchises since before 2020. The company currently has around 1,600 units in Brazil.
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