Desperation? Simon Property Group (the biggest mall owner in America) sues Starbucks over Teavana closures

Simon Property Group

Simon Property Group, the largest owner of malls in the United States has filed a lawsuit against Starbucks according to this USA Today report. The announcement comes on the heels of Starbucks announcement to abruptly close down all 379 Teavana locations.

Simon Property Group has filed a lawsuit in Marion County against the Starbucks Corp. over for its plans to shutter all of the Teavana stores operating in Simon malls nationwide.

In the lawsuit filed Aug. 21, Simon officials argued that their shopping centers rely on each of their tenants fulfilling their lease obligations, including  continuously operating in the space for the entire lease term.

But when Starbucks announced July 27 that it would be closing all 379 of its Teavana stores, including the 78 stores in Simon shopping centers, the company “put its stock price above its contractual obligations, the viability of Simon and its Shopping Centers, other retailers and consumers who count on the Teavana stores.”

The lawsuit also noted that Starbucks made the decision “unilaterally, without prior consent from Simon.”

During the July 27 announcement, Starbucks officials said the Teavana stores will be closed by next spring and the 3,300 employees will be able to apply for jobs in Starbucks stores, where it is expected to create 68,000 new jobs in the next five years.

Simon, the Indianapolis-based shopping mall giant, is now seeking a preliminary and permanent injunction to keep Starbucks from closing the stores early, as well as all appropriate relief as a result of this legal action.

“Starbucks does not contend that Simon breached any lease or that Starbucks cannot remain viable if it continues to honor its promises in its leases for stores in Simon’s Shopping Centers,” the lawsuit states. “Instead, Starbucks simply believes it can make more money if it violates the leases than if it honored the contractual promises and obligations.”

Mall retailer Perfumania has filed for BANKRUPTCY…64 stores to close

Perfumania

More bad news for retail. Perfumania has announced they will be filing for bankruptcy and closing  65 stores according to this Richmond.com report.

Discount designer perfume retailer Perfumania plans to close its store in Williamsburg Premiums Outlets as it trims 65 stores nationwide, part of a Chapter 11 reorganization bankruptcy petition.

Perfumania Holdings Inc. filed the bankruptcy petition Saturday in U.S. Bankruptcy Court for the District of Delaware.

The company, based in Bellport, N.Y., has a total of 230 stores, including two in Virginia. In addition to the store in Williamsburg, the company operates a store in Potomac Mills in Prince William County in Northern Virginia. The Potomac Mills store will remain open.

“This process will allow us to more quickly adapt to the shift in consumer shopping habits by focusing more of our resources on implementing our e-commerce strategy, making Perfumania a stronger and more competitive company,” said Michael Katz, Perfumania president and CEO.

P/C Phillip Pessar

Using Airbnb now considered ‘terrorist’ by NYC Hotel Association

Anyone who dares to roam off the plantation will be gently nudged back to safety using fears of terrorism according to this Tech Crunch report.

The hotel industry is in decline thanks to companies like Airbnb. Unfortunately, the campaign to stop you from using anything but overpriced hotels has reached a new low….Terrorism.

The war between Airbnb and the hotel industry rages on, and it’s reaching new lows here in New York.

A campaign, backed by the Hotel Association of New York City Inc. and the union that represents hotel workers, launched a 10-day, 30-second ad that links Airbnb’s short-term rentals to public security threats.

The ad sets the stage for fear-mongering, stating that NYC remains the number one target of terror in the world, citing the NYPD police commissioner, and reminding viewers that there are 40,000 Airbnb listings in NYC.

The ad even goes so far as to say that Manchester bomber Salman Abedi was staying in a short-term rental apartment when he staged and executed the attack, being sent massive packages.

Airbnb has said that Abedi’s unit was not an Airbnb listing, and has rightly called the ad “an outrageous scare tactic.”

RELATED: Stop buying toxic products from Amazon and Walmart…

“The fact is Airbnb had nothing to do with the tragic events in Manchester and we are one of the only hospitality companies that runs background checks on all U.S. residents, both hosts and guests,” Airbnb Press Secretary Peter Schottenfels told the NY Daily News. “Hotel CEOs have a responsibility to tell us why they don’t do the same and why they continue to fund this sort of despicable, cynical advertising.”

Applebee’s announces MASSIVE closings…135 restaurants to disappear

Applebee's

Like we didn’t see this one coming. According to this WBS report, Applebee’s is closing up to 135 restaurants. The struggling chain has seen a massive decline in sales as the company has not adapted to the trend of cleaner, healthier eating. Applebee’s has also failed to ‘right size’ their operation as discretionary cash has dried up for many Americans.

Your local Applebee’s may be closing soon, as the struggling casual restaurant chain tries to turn its business around.

In an August 10 news release, Applebee’s reported that comparable same-restaurant sales declined 6.2% for the second quarter of 2017, and they’re expected to range between negative 6% and negative 8% for fiscal 2017.

DineEquity Inc., the parent company of Applebee’s, described this as a “transitional year” for the chain.

As part of its turnaround strategy, more restaurants will be closed than initially planned. The company now expects to shut down between 105 and 135 of its nearly 2,000 Applebee’s locations.

In May, the expectation was that between 40 to 60 restaurants would be shuttered in fiscal 2017.

No list of the affected locations has been released. Applebee’s says the expected closures will be based on several criteria, including franchisee profitability, operational results and meeting brand quality standards.

Applebee’s president John Cywinski said back in May that the turnaround plan was just beginning to take shape.

Applebee’s latest attempt to bring customers back is its new Topped & Loaded menu. Starting at $10.99, the customizable lineup features four protein choices, three toppers and four side options.

Cancer and diabetes rates to EXPLODE as McDonald’s unveils plan to open 2,000 more stores in China

China, once known for having some of the lowest cancer and disease rates throughout the world has quietly been sieged by ‘unhealthy’ Capitalism. Pizza Hut, Burger King, Taco Bell, Coca-Cola and finally McDonald’s are aggressively expanding into this untapped market leaving a deadly trail of cancer, diabetes, and disease for future generations to deal with.

According to this South China Morning Post report, McDonald’s will more than double their presence in China bringing the total number of stores to 4,500 by the year 2022.

McDonald’s said on Tuesday it would almost double the number of stores in mainland China by 2022, slightly more than was expected, as part of its strategic partnership with state-backed conglomerate CITIC Ltd and the Carlyle Group.

Earlier in the year, the US fast food chain agreed to sell most of its China and Hong Kong business to CITIC and Carlyle for up to US$2.1 billion. The new partnership had planned to add 1,500 restaurants in the two areas over the next five years.

But McDonald’s, which is betting the partnership will help it expand in the world’s No 2 economy without using much of its own capital, said it expects to increase the number of stores in mainland China to 4,500 by the end of 2022, from 2,500 now.

The company said it was targeting a double-digit annual sales growth in mainland China over the period, and was aiming to add 500 stores annually by 2022 versus 250 stores this year.

“China will soon become our largest market outside of the United States. We are excited to join forces with CITIC and Carlyle for better localised decision-making to meet changing customer demands in this dynamic market,” Steve Easterbrook, McDonald’s chief executive, said.

P/C MIKE MOZART