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Starbucks to Close 250 Stores Amid DEI Lawsuit Settlement
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In Short: Starbucks will close approximately 250 stores in North America, the company's COO announced, as part of a settlement with Florida over a DEI lawsuit.
Starbucks announced plans to close roughly 250 stores across North America, COO Mike Grams revealed Thursday. The closures come as part of a settlement with Florida over a DEI lawsuit.
Grams stated in a public statement that while most of the company's 18,000 North American stores are profitable, a small portion has been struggling. The decision to close these stores is described as difficult.
Starbucks' chief legal officer will be required to submit annual certifications of the company's compliance with Florida's civil rights law, which prohibits race- and sex-based preferences in various business practices, for the next four years.
The agreement applies to all Starbucks operations nationwide, not just Florida locations, according to Florida Attorney General James Uthmeier's office.
The announcement follows a resolution of a DEI lawsuit in Florida last week, where Starbucks committed to complying with the state's civil rights law.
What's still developing
- "Closing any coffeehouse is a difficult decision, and we know today’s news will be hard for the partners, customers and communities affected," the statement said.