It looks like tea time is over for one nationally recognized tea chain. That’s right, Starbucks has announced it will be closing all 379 Teavana locations by next year.
The announcement came on Thursday, with Starbucks citing persistent “underperformance” and “declining foot traffic” in malls as key factors leading up to the decision. The company stated it had been trying to “reverse the trend” of declining performance for some time now, but efforts to rebrand through “creative merchandising” failed, leaving the company no choice but to close the doors of its acquisition.
Teavana was acquired by Starbucks in 2012 for approximately $620 million, with the aspirations of leaving the same mark on the speciality tea industry that the coffee mogul has had on coffee. Unfortunately, with the announcement of it’s closing, that clearly has not been the case.
Most of the store locations are expected to close by spring of 2018, leaving quite a gap in malls across the country considering a majority of the locations were mall-based. Several local malls will be affected by the closing of the multiple Teavana Arizona locations, including Chandler Fashion Center, SanTan Village, Scottsdale Fashion Square, Biltmore Fashion Park, Kierland Commons, and Arrowhead Towne Center.
The announcement has also affected over 3,300 employees, leaving them unemployed and searching for hire. Starbucks said the displaced Teavana workers are encouraged to apply for Starbucks store positions.
Teavana is not the first Starbucks venture to fail; in 2015 Starbucks was forced to close it’s bakery cafe acquisition, La Boulange. The news of its most recent business bust has some questioning the future stability of the company, but only time will tell.
As of now, Starbucks will continue to sell Teavana tea in their Starbucks store locations, however, that could be subject to change.