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.
Starbucks Closing 600 U.S. Stores
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