The economic crisis is eating into high-end coffee consumption, as Starbucks found out in its fiscal first quarter.
In earnings just released, the coffeemaker said it would lay off up to 6,000 employees at its stores and let go another 700 non-store employees, half of which would come at the company's Seattle headquarters.
Also, Starbucks said it would close 200 U.S. and 100 foreign stores. This comes in addition to the shuttering of 661 stores announced last year. Most stores are expected close this year.
Bankruptcies and Liquidations:
- Jan. 7, Goody's liquidates, closing 287 stores
- Jan. 8, Against All Odds files for bankruptcy protection, operates 64 stores overall, plans to close West Coast stores
- Jan. 13, Shane Co. files for bankruptcy, operates 23 stores
- Jan. 14, Gottschalks files for bankruptcy, operates 58 stores
- Jan. 16, Circuit City to Liquidate, closing 567 stores
Potential Bankruptcies & Liquidation Impact: 999 stores
- Jan. 8, New York & Co., 50 stores
- Jan. 8, Macy's, 11 stores
- Jan. 9, Supervalu, 50 stores
- Jan. 13, Cost Plus, 26 stores
- Jan. 20, Yankee Candle, 28 Illuminations stores
- Jan. 21, Filene's Basement, 11 stores
- Jan. 22, Phillips-Van Heusen, 175 stores
- Jan 22, Brown Shoe, up to 35 Famous Footwear stores
- Jan. 26, Home Depot, 48 stores
- Jan. 29, Starbucks, 200 U.S. Stores (plus 100 international)
Total Closings: 634 stores
Potential Impact of All Announcements to Date: 1,633 stores