Judge Blocks Starbucks From Shuttering 77 Teavana Stores In Simon Property Group Malls
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Starbucks has been temporarily barred from closing 77 of its Teavana stores.
A judge in Indiana blocked Starbucks from closing the Simon Property Group stores because it was determined that the mall operator could not handle the financial repercussions, the New York Post reports.
Simon fought to block Starbucks in the summer after the coffee chain first announced plans to shutter its Teavana stores. The shopping mall REIT feared the closures would cause a domino effect leading other stores in its malls to close as well. The judge ultimately decided Starbucks would be able to better absorb the estimated $15M financial hit than Simon could.
While the ruling may be seen as a win by struggling mall owners, it is an unnerving turn of events for distressed retailers who may need to close due to bankruptcy, the Post reports. It could also lead to further trouble for Starbucks, which had plans to close 379 Teavana stores in total. Other mall landlords could join Simon in attempting to bar the coffee giant from closing in their properties as well.