Starbucks Corporation (NASDAQ:SBUX) is being sued over the company’s decision to close its Teavana stores.
Its artisanal tea shops are being shut down, prompting Simon Property Group Inc (NYSE:SPG) to file a lawsuit against the company as Starbucks closed all of its Teavana stores in Simon malls around the nation.
Simon Property Group is arguing that the coffee giant is failing to fulfill its lease obligations as Starbucks should have continued operating the stores through the duration of the lease.
The suit adds that the coffee company “put its stock price above its contractual obligations, the viability of Simon and its Shopping Centers, other retailers and consumers who count on the Teavana stores.”
Starbucks announced that it would be shuttering all 379 of its Teavana stores, 78 of which were located in Simon shopping centers. The suit further states that the company does not believe it has breached its lease or that it is obligated to honor its lease promises.
“Instead, Starbucks simply believes it can make more money if it violates the leases than if it honored the contractual promises and obligations.” Simon Property Group also stated that other companies shut down their retail locations in its malls recently, but they did so in order to avoid financial ruin as these stores were struggling.
SBUX stock grew 0.8% Wednesday.
