1.
Consumer Corner: Foreclosure settlement no magic bullet for economy
SEATTLE, July 2 (UPI) -- Starbucks Corp. executives woke up and smelled the coffee, announcing they will close 600 U.S. outlets in response to sagging consumer spending.
The store closings the Seattle company announced Tuesday, which affects about 12,000 workers, or 7 percent of the gourmet coffee chain's global workforce, are to begin at the end of this month and be completed by March 2009, the Chicago Tribune reported.
"We believe absolutely we're seeing a major impact from the economy," Chief Financial Officer Pete Bocian said in a conference call.
Bocian also said the company recognized it was suffering from market saturation and cannibalized sales, the newspaper said.
The cuts will leave Starbucks with about 6,600 company-owned stores in the United States. Starbucks is planning to open 200 new locations in fiscal 2009, down from an original plan of 250.
Starbucks will take on charges between $328 million and $348 million for the closings.
The company's stock closed down 12 cents at $15.62 per share Tuesday, but bounced more than 4 percent in after-hours trading.
|
|
|
| Additional Business News Stories | |
HOUSTON, Feb. 14 (UPI) --
Oilfield services company Weatherford International said a U.S. judge found no evidence its equipment in the Gulf of Mexico contributed to a 2010 oil spill.
|
WASGHINGTON, D.C., Feb. 13 (UPI) --
Defense industries are weighing the potential impact of proposed defense cuts running into tens of billions of dollars over the next 10 years.
|
Local markets will probably not be swamped by waves of foreclosures following the multi-state mortgage settlement announced yesterday. Rather, the huge inventory of one to two million foreclosures will enter markets gradually....
|
Investors will not have the distraction of financial reports to look forward to this week. They will have to look at the spot news headlines instead.
|
| Stories | Photos | People | Comments |
View Caption
