Starbucks, Simon Settle Lawsuit Over Closure Of 77 Teavana Stores
Starbucks has reportedly reached an agreement with mall owner Simon Property Group following a lawsuit regarding the closure of 77 Teavana stores, Puget Sound Business Journal reports.
While details regarding the recent settlement have yet to be disclosed, the news follows an order made by an Indiana judge that temporarily barred Starbucks from closing the locations. A judge in Indiana determined in December that Simon Property was not equipped to deal with the financial repercussions that would follow should those stores shutter. Estimated financial damages would have been upward of $15M.
The mall operator first began to fight back against the closures in the summer, after Starbucks announced plans to shutter a total of 379 Teavana stores due to underperformance and slumping sales.
The coffee giant first purchased the tea brand in 2012 for $620M, but declining foot traffic in malls proved to cause difficulties when it came to meeting its sales objectives.
Simon feared the closures would cause a domino effect inside its malls that would eventually force other brands to shutter their doors during a time when retailers across the country are already struggling.
