Starbucks Corp. will close all 379 Teavana retail tea stores, mostly in malls, including one at Valencia Town Center, the company said Thursday.
The company said Teavana, which Starbucks bought for $620 million in 2012, had been “persistently underperforming,” and that despite efforts to breathe new life into the brand, “the underperformance was likely to continue.”
The 3,300 employees affected by the closings , most of which will take place by next Spring, will be able to apply for positions at Starbucks stores. Starbucks said it remains on track to create 240,000 new jobs globally and 68,000 in the U.S. over the next five years.
Starbucks had net income of $2.8 billion on revenue of $21.3 billion in 2016. The company operates more than 25,000 locations, including standalone stores and retail outlets inside larger stores.