Simon Property Group raised eyebrows in the real estate and retail communities this week with the filing of a suit that challenged Starbucks’ decision to close 78 Teavana stores in Simon malls. All of the retailer's 379 Teavana shops are slated for closure through next year.
Simon’s suit contends that Starbucks, in closing its stores in Simon malls, would be “shirking its contractual obligations at the expense of Simon’s shopping centers.” It’s a case with the potential to set precedents in how “covenants to operate” are executed and enforced in retail leases, according to one lawyer.. . . more