Starbucks Looks to Cancel Leases on Dark Stores

Several property owners and developers have filed lawsuits alleging that Starbucks, the world’s leading coffee retailer, owes rent and other expenses on stores that have either gone dark or decided not to open. After experiencing slow sales and weak earnings, the coffee giant slashed its expansion plans and announced that it would close more than 600 U.S. stores by early 2009.

In their complaints, owners allege that Starbucks is paying rent late and letting stores go dark prematurely in an attempt to intimidate and pressure them into letting the company out of its leases at a lower cost than is due. Starbucks has denied the allegations and claims that it is in compliance with its lease obligations and unaware of any delinquent rent. In some cases, Starbucks has argued that its lease gives it the right to terminate or that it doesn’t have to pay rent because the owners have not lived up to their responsibilities.

Source: WSJ.com