Teavana goes out of business

The American Starbucks group wants to close its Teavana stores for lack of success. (Archive image)

The company announced on Thursday after the US market closed. Starbucks wants to offer the approximately 3,300 affected employees new jobs in other stores.

The group plans to create 240,000 new jobs worldwide over the next five years. Starbucks justified the Teavana decision with poor sales figures. However, the brand, which was bought for $ 620 million in 2012, is to be retained and continued to be offered in Starbucks stores.

At the same time as this information, the US company announced that the profit in the second quarter compared to the previous year's figure has shrunk by eight percent to 692 million dollars. Income increased in the same order of magnitude to $ 5.7 billion in the second quarter - in the past, however, the growth in sales was often much stronger.

The news did not go down well with investors. The shares fell after the hours of trading by more than three percent. The group had previously announced that it would take over the remaining 50 percent of its business in China for $ 1.3 billion from joint venture partners. It is the largest acquisition in Starbucks history.

Published: 07/28/2017, 12:11 am
Last updated: October 7, 2018, 2:24 pm