Interesting Twist to Teavana closing
They are being sued by mall operators because they signed contracts saying they would be open for 10 years or more. I suspect they will be able to buy out of the contracts, but may not close as soon as they want.
It does not surprise me that Starbucks executives would think themselves above the legal agreements that Teavana made with the mall operators. Many such corporations think themselves above the law. But the malls have lawyers too. And it is the lawyers who will win in the end anyway.
The mall operators are big corporations too. I think Starbucks just didn’t think it through.
Frequently executives at big companies think they are above the law. I worked for such company executives and they ran the operation into the ground and into bankruptcy. But they all left with pocket fulls of money while the employees got almost nothing.
The other thing about this is in most malls Teavana stores had no compete clauses. Now even the big department stores cannot get no compete clauses. Maybe the people at Simon felt they had been too generous to give Teavana these clauses. I am sure David’s Tea would have expanded into Long Island where they have only one store but they were blocked because Teavana was given a sweet deal by mall management. Maybe mall management felt stabbed in the back, who knows.
Login or sign up to leave a comment.