Starbucks Corp. announced Monday that it will be closing 600 of its stores in the United States. The closures are part of the company that started in 1971 to transform the company.
The closures are part of an effect to transform the company. All of the stores that will be closed are under performing other company stores.
Most of the stores will be closed during the 2008 fiscal year and the first half of the 2009 fiscal year.
The closings will cost approximately $200 million of asset write-offs that will be shown on the third quarter of the 2008 fiscal year.
Starbucks expects to pay out $8 million in severance packages. By closing the stores the company expects a net cash outflow of $100 million.
The coffee powerhouse bases in Seattle also plans on opening fewer stores in fiscal 2009.
The employees that stores are being closed could be placed in other stores according to the company.
4 Comments
July 6, 2008 at 9:05 pm
I need to get this out there…there are a few stores that are NOT underperforming that are being closed. One happens to be in my area. Not the one I’m a barista at, but one that I have many friends who work at. Don’t let the press release fool you. It’s not all underperformers!
July 6, 2008 at 9:29 pm
Sorry, what can I say you loose some you win some…It is not good coffee in any event…
July 7, 2008 at 1:07 am
That’s alright, because coffee isn’t good for you anyway. Far too many people think they have to drink this stuff to be a grownup. I never drink coffee. I just drink water.
July 7, 2008 at 3:38 am
Starbucks has some great goodies, bars and things like that. But their coffee, I feel, is way too expensive!
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