Teavana which was purchased by Starbucks in 2013 announced the closures of all 379 stores.
On Jan. 7, the Cool Springs Galleria location of Teavana closed its doors. At the initial news of the shuttering, Starbucks CFO Scott Harlan Maw said in a statement: “Over the last several years many mall-based retailers have been adversely impacted by reduced foot traffic … Our Teavana mall stores have not been immune, with many reporting negative comps and operating losses for some time.”
No word yet on if the brand will continue an online presence but Starbucks is continuing to expand the tea offerings in stores.
Starbucks released in November that entered into an agreement with where Unilever is to acquire the assets of the Tazo brand including its signature recipes, intellectual property, and inventory for $384 million.
In a press release, Starbucks stated, “Over the past five years, we have established Teavana as our primary global brand focused on the premium tea segment. With our growth strategy for premium tea exclusively focused on Teavana, we are pleased to transition our Tazo business to Unilever,” said Kevin Johnson, president and chief executive officer, Starbucks. “We continue to see significant growth in our tea business through our Teavana brand, and this transition supports our strategy to elevate the premium tea experience for our customers.”
The transaction is expected to close during the fourth calendar quarter of 2017, with complete transition between the two companies by the end of calendar year 2018, subject to regulatory approval.