The Brazilian operation of the Italian Food Market Eataly was able to suspend in court the execution of an eviction order of the store in which he operates, on Avenida Juscelino Kubitscheck, prime region of the city of São Paulo. As the Broadcast column showed, the action was filed by the CAOA Patrimonial, owner of the property where a group dealership operated in the past.
In financial difficulties, the company filed a request for judicial recovery at the end of last year, with debts that amount to about $ 50 million and has waged in court a battle to avoid the loss of the point.
“The decision of the court stresses that the eviction would make the company’s recovery unfeasible, directly impacting operations and resulting in the immediate termination of various employment contracts,” Eataly said in a statement.
According to the company, the market employs 300 people.
The financial crisis gained a new chapter earlier this year, after the Brazilian operation lost the right to use the world -known Eataly brand.
The local representative says that the decision is not definitive and that the merits will still be analyzed by the competent instances.
Continues after advertising
The withdrawal of the rights of use of the name Eataly was decided in an arbitration between the Italian group and the local representative, which tries to reverse the measure. In the store, all references to the name had to be removed.
The façade sign was dismantled and Tarjas began to cover mentions of the brand in the interior.
What the group says in the request for judicial recovery
Continues after advertising
In the request for judicial recovery, the Brazilian group says that the financial crisis was reflected the impacts of the pandemic, in addition to the high costs of renting and importing products sold in the market.
Current management says it has injected $ 20 million to try to equalize the company’s problems.
“Eataly reaffirms its dedication to the continuity of operations and trusts a positive outcome to the judicial process. The company is focused on the development and sustainable growth of the business, adopting all necessary measures to ensure the preservation of its activities, ”the company said in a statement.
Continues after advertising
Known for being one of the most traditional Italian markets, Eataly was conceived in Turin, Italy in 2007, with the concept of innovating in the distribution of typical European agricultural items.
Today, it is present in at least 10 countries, in cities such as Paris Chicago, London and Tokyo.
The market has become a global symbol by gathering items such as wines, pasta and chocolates, as well as restaurants, ice cream shops and cafes.
