Wednesday, July 2, 2008

The Apocalypse is Coming!! Everybody Panic!!

Starbucks closing 600 stores in the US


SEATTLE -- Starbucks has announced it's closing 600 underperforming stores in the United States.

The Seattle premium coffee company also announced Tuesday it expects to open fewer than 200 new company operated stores in the United States in fiscal 2009.

The company says it will try to place workers from closed stores in remaining Starbucks.

CEO Howard Schultz says unprofitable stores were identified through a review aimed at transforming the business for the long-term.

The stores are spread across all major U.S. markets, and 70 percent have been opened since the beginning of fiscal 2006.

Schultz said in a statement that Starbucks is focused on improving efficiency, customer satisfaction and shareholder value.

Starbucks says the aggregate pretax charges for the store closures will range from $328 million to $348 million.

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