Starbucks Is Shutting Down All Teavana Stores

Say goodbye to Teavana, because Starbucks just announced that it would be closing all 379 Teavana stores by the end of 2018.

Teavana is a chain of tea stores that began in Atlanta, Georgia, in 1997. In 2012 Starbucks bought the chain in a deal estimated to be worth $620 million. While tea and tea-based beverages in Starbucks stores have been doing well, the brick-and mortar Teavana stores have reportedly been struggling. In 2016, Starbucks closed all but one of its Teavana tea bars.

There have been several attempts at fixing the problem with new store designs and merchandising efforts, but those seem to have been ineffective.

"The company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue," the company said.

Most Teavana locations are in malls, and mall traffic has been down in general. The Teavana stores specialied in selling loose-leaf and bagged tea, tea beverages, and tea-preparing accessories.

The loss of the Teavana chain will clearly impact a lot of people's jobs. CNN Money reports that the Teavana closures will impact approximately 3,300 jobs. Starbucks says Teavana employees will be invited to apply for jobs at Starbucks stores.

Starbucks stores are expanding at a rate of approximately a new store every day, especially in China. Click here to see the world's coolest Starbucks locations.