Teavana Closing Up Shop
Starbucks is closing all 379 of its Teavana stores; the coffee chain will continue to sell Teavana tea at its namesake stores. The reason given for the closures was the chain’s “underperformance was likely to continue.” Starbucks purchased Teavana for $620 million in 2012 in the hopes it could repeat the success it had with coffee in the loose-leaf, exotic tea market.
“The combination of trends in the quarter and ongoing macro pressures impacting the retail and restaurant sectors has us a bit more cautious,” Starbucks CFO Scott Maw said in a statement. Teavana employees will have the opportunity to apply for jobs at Starbucks.
Starbucks has taken hits like the before. It closed its 23 La Boulange bakery cafes and two manufacturing facilities in 2015.