Posted on 12/03/2017 8:41:50 AM PST by Maceman
An Indiana judge has taken an unusual step and temporarily barred Starbucks from closing 77 failing Teavana stores in Simon Property Group malls because the real estate giant was less able to handle the financial pain.
Starbucks said in July it planned to shutter its 379-store Teavana operation — but Simon rushed to court to block 77 stores in its malls from going dark — claiming such a move by a high-profile tenant could spark other stores in its malls to close.
Starbucks, after trying to turn around its stumbling tea chain, said last August it was pulling the plug on Teavana.
It wanted to close all the stores by the end of the year.
But Indianapolis-based Simon, in an environment where hundreds of stores across the country are closing, rushed to a local court to ask Judge Heather Welch to stop the store closing.
Welch, in a 55-page order, found that the very profitable Starbucks could absorb the financial hit — estimated by Starbucks to be $15 million over five months — better than Simon could. The mall operator did not provide an estimate of how much the closings of the Teavana stores would hurt them.
(Excerpt) Read more at nypost.com ...
You can’t make this stuff up
Only thing worse than smarmy pretentious lib Starbucks
Is huge leftist contributor and well known hard to deal with nasty operator Simon the mall magnate
Simon is an ahole
Just read about the brothers
And their malls discriminate against conservatives when possible....see threads here
As much as it pains me I’m team Starbucks on this one
Starbucks has excellent coffee.
The judge is setting a precedent.
When Starbucks disregards the ruling, the precedent is set.
President Trump is then free to disregard all the leftist judge obstruction of governance rulings that plague his ability to govern
Leftist Starbucks should be thrilled one of their own communist judges ruled in a ‘share the wealth equally’ ruling. How dare greedy Starbucks not help their poor division Teavana in need. lol
Exactly. Don’t sign on the line if you don’t want to do the time.
Tevana tea is horrible. Before Starbucks bought Tevana they used to use a company called Tazo which is a decent tea as a supplier. I like Tazo’s mint and black breakfast tea. That was my treat in airports. Since Teavana came on the scene I bring my own tea bag and request hot water for my beverage on the flight.
Unless there is something in the lease there is none.
The courts should enforce actual contracts, not contracts people wished they had signed.
This goes double for the Constitution and why we should give progressivism the heave ho down to the FDR era.
Teavana wa a perfect example of a great product so badly priced it couldn’t make it. Their teas were delicious but 5 times the price of other quality teas.
I can not remember the last time I went to a mall. Ten?
Twenty years ago? Years ago I was listening to two women in the booth behind me. They only went to malls to try stuff on, take the stock numbers and then buy it cheaper on line. I do know something about mall rent. I realized then that the business model of having a shop in a mall was declining and would vanish.
We sold most of our family’s retail portfolio years ago.
take it out of her hands, take it to bankruptcy.
SPG would still have to try and cover, damages being the difference between the Teavana lease rate and what they got from covering.
Wasn’t clear to me from the article that SBux was breaking a bunch of leases, but if they want to shutter the Teavana stores and buy out their leases, the company should be allowed to do that.
Why not Obama&Co forced people to buy insurance or else the great democrat way on the march comrade.
SPG has long and powerful political tentacles. They are one of the major reasons malls have become so bland and uninteresting over the last two decades.
Just plain insane
I actually like Teavana and their variety teas but they are too pricey and I can get my green tea much cheaper at some local Asian food stores.
The judge also ordered Starbucks make a profit from now on. This ruling is ridiculous!
“Every town has the same two malls: the one white people go to and the one white people used to go to.”
-—Chris Rock
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