Mall Operator Sues to Prevent Starbucks From Closing Teavana Shops
When a chain goes out of business, it's usually because it has run out of money. When that happens, bankruptcy is filed and various creditors -- everyone from vendors to staff to landlords -- fight for a piece of whatever pie remains. That, however, is not what's happening with Starbucks' (NASDAQ: SBUX) decision to close its stand-alone Teavana stores.
Those locations aren't profitable or, as the company reported in its Q3 earnings release, they are "persistently underperforming" and the "underperformance was likely to continue." Because of that, the coffee company decided to close all 379 Teavana stores, with the majority shutting down by spring 2018. Starbucks acquired Teavana in 2012 for roughly $620 million in cash.
Simon Property Group, the largest shopping center operator in the United States, does not want that to happen. The mall owner believes it can legally force Starbucks to keep the 78 Teavanas located in its malls open, at least until their leases expire, and it has filed a lawsuit to make that happen, the Indianapolis Business Journal (IBJ) reported.
Source: Fool.com
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