Starbucks to Close 600 Stores Nationwide

By: Lee Gordon Email
By: Lee Gordon Email

According to the Associated Press, Starbucks Corp. said Tuesday it will close 600 stores in the United States in the next year and cut back the number of new stores it had planned to open.

Starbucks said 70 percent of the stores slated to be closed had opened since the start of the 2006 fiscal year. The total includes 100 previously announced store closures.

The company expects charges between $328 million and $348 million related to the closures, including a charge of $200 million in the third quarter.

Once those underperforming stores have shut down — a process the company said will happen gradually from now until the first half of 2009 — Starbucks said it expects the change to boost earnings by $100 million a year.

Starbucks said it will try to place workers from closed stores in remaining Starbucks.

Shares of Seattle-based Starbucks slipped 11 cents to $15.51 in after-hours trading after losing 12 cents to close at $15.62.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WCTV 1801 Halstead Blvd. Tallahassee, FL 32309
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 22785654 - wctv.tv/a?a=22785654
Gray Television, Inc.