Last month, Brazil's Labor Ministry found degrading living conditions for 133 sugarcane workers at Brenco, according to the Associated Press.
In addition to Burkle's Yucaipa Cos., Brenco's investors include some high-profile names: Hollywood producer Steven Bing, venture capitalist Vinod Khosla, AOL founder Steve Case and former World Bank President James Wolfensohn. Brenco raised $200 million last year, and Yucaipa controls a 2.8% stake in the company.
Yucaipa told the AP: "Newspapers report that Brenco has taken immediate action to remedy the situation. ... If that is not the case we will sell our shares in the company."
[UPDATE May 15: Yucaipa called The Deal to address some inaccuracies in the AP story that Dealscape highlighted above. It was later divulged that the housing was in fact not Brenco owned, and the review was routine and not requested by labor. Additionally, Yucaipa only owns a 0.6% stake in the company, and the AP's 2.8% figure in fact is how much the investor group as a whole owns.] - Matthew Wurtzel
See story from The Associated Press via Hoover's
See story about Brenco funding from CNNMoney
See 2005 Q&A with Burkle from The Deal newsweekly
In news that may disconcert anti-Wall Street labor activists, Ron Burkle, self-proclaimed friend of labor, may be caught up in a labor scandal in Brazil via his investment in ethanol producer Brazil Renewable Energy Co, or Brenco.
