Subway Files for Judicial Recovery in São Paulo

The snack bar chain announced a debt of R$482 million. The request was made by the South Rock group, which has been in the judicial recovery phase since December

Brandon Bell/Getty Images North America/Getty Images via AFPThe snack bar chain belongs to the Southrock Group

Snack restaurant chain subway Submit a request for judicial recovery Sao Paulo, announcing a debt of 482 million Brazilian reais. The controller, South Rock Group, which had already been in the judicial recovery phase since December 2023, filed the application. Subway was excluded from the process, but a notice from the North American-based owner forced a request for court protection. A group of creditors boycotted the negotiations and began demanding immediate payment of the amounts owed, prompting Subway to seek judicial recovery.

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The forbearance agreement that allowed Southrock to act as Subway's master franchisor in Brazil has been terminated, and there has already been talk of a new controller for the chain's activities in the country. The company's lawyers requested that Subway's lawsuit rest on the main action, pending the judge's decision. Initially, Subway was not included in Southrock Group's protection application, which included the company's other brands. The network crisis has been attributed to the pandemic and the group's slow recovery, but Southrock believes the situation can be resolved.

*The report was prepared with the help of artificial intelligence