Judge bars Starbucks from closing 77 failing Teavana stores
No fan of Starbucks, but a private business being told by government it can't prevent its losses? WTF??
"In a 55-page order, found that the very profitable Starbucks could absorb the financial hit — estimated by Starbucks to be $15 million over five months — better than Simon could. The mall operator did not provide an estimate of how much the closings of the Teavana stores would hurt them."
Atlas has Shrugged.
"In a 55-page order, found that the very profitable Starbucks could absorb the financial hit — estimated by Starbucks to be $15 million over five months — better than Simon could. The mall operator did not provide an estimate of how much the closings of the Teavana stores would hurt them."
Atlas has Shrugged.
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But closing a store that is losing money is something all retailers do, and it often involves breaking a lease. I see no major or unusual wrong here unless it's by the judge.
David Friedman, in Law's Order, discusses breach of contract (and why it should often be allowed) at great depth.
I'd say ridiculously unreasonable.
Why have bankruptcy laws if people can be forced to remain in business while hemorrhaging money?
When the NFL offered 100 million to the black players (who make millions each) to help their "cause"- all I thought of was how much my ticket prices would go up as a result. It made me upset and even less likely to go to an NFL game
Starbucks declined to say what its obligations, or any possible penalties, would be for pulling out of its leases early. A company spokesperson said only that “we are responding to the lawsuit and are working to resolve this dispute.”
Source:
https://www.seattletimes.com/business...
Without anyone directly referencing the contract both parties agreed to, I cannot agree that it is a bad judgement.
On the surface with the limited info I have; it is a bad judgement and fouls the court the judgement was given in. I am quite certain that I don't have all the information needed for me to actually hold that as my opinion yet. I cannot know fact from fiction when I don't know who agreed to what.
http://www.businessinsider.com/judge-...
NY Post as well https://nypost.com/2017/12/01/judge-b...
"“I’m somewhat shocked by the ruling,” said real estate lawyer Joshua Stein. Welch “catalogues every possible detriment to Simon as a result of having vacant space,” Stein said, adding, “That’s part of a job description of owning real estate. You deal with it and don’t get injunctions to have your tenant continuing to operate.”
Starbucks is a very "progressive" company. Simon is a toilet stain of a company. There is no telling what they agreed to and no way of knowing if the reporting in this article is complete or fully accurate.
We can not trust media to give us unbiased fact. We never should have in the first place.
If Starbucks has signed an agreement that states it keeps up the locations for it's tea stores by keeping those stores open and operational for the duration of the lease; then the ruling was appropriate and the media is electing to leave out that fact.
If the lease agreement only states that it will pay the lease throughout the contract, AND the judge ordered them to keep the stores open; then the judge has overreached significantly, and the media has mostly fairly reported the situation.
I would imagine the language of the contract falls somewhere in the middle of these. Unfortunately we cannot know what is going on without the lease, the ruling and probably all other associated paperwork in the case.
Even my local reporters are being called out nearly daily for twisting facts to create sensational headlines or misleading articles.
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