May 19, 2011
Restructuring
Borders Seeks Coffee Break With Seattle’s Best
- Bloomberg News
Java lovers who enjoy sipping Seattle’s Best coffee at their local Borders stores may soon have to choose between the books and the brew.
Borders Group Inc. is set to seek bankruptcy-court permission to terminate its licensing agreement with the Starbucks Corp. brand, a move that would remove the Seattle’s Best name from cafés at Borders’s 417 remaining locations nationwide.
Ending the seven-year partnership with Seattle’s Best is a cost-cutting move for Borders, allowing it to reduce the licensing fees it pays and boost café profits.
The exact amount of the savings is not known because Borders did not file the contract in public court records and is asking to withhold details of the deal from public view.
Borders, however, says its customers won’t get burned.
“The change will also provide us with the opportunity to tailor menu items and the café experience based on our customers’ preferences,” Borders spokesman Mary Davis said.
Seattle’s Best brand spokeswoman Jenny McCabe said Starbucks and Borders have had talks about entering into a new contract with revised terms, but so far those have not been fruitful.
“We look forward to continuing to serve the many fans we’ve made at Borders through the 50,000 other places where our coffee can now be found,” she said.
Borders’s brand-name coffee divorce comes after Seattle’s Best got steamed about how the book retailer handled the closure of some 200 locations in the early stages of Borders’s bankruptcy case.
In court papers, Seattle’s Best fretted that its trademarks and trade secrets could be at risk if its coffee cups and logos were left to wallow in soon-to-be-dark Borders stores.
Stephanie Gleason
Katy Stech
Melanie Cohen
Jacqueline Palank
Joseph Checkler
Do you really think closing Borders helps anyone? Many of us still love books and have not let what some corporate bullies initiate deter us from being a good source for our customers who still enjoy talking to someone who loves books. All those newly unemployed booksellers good how?
well said, but there was no leak of information, once Chapter 11 was filed the documents become public information. thus any news company can request to look at them (I could be wrong). Borders just wasn’t going to tell their employee’s for a day or so after the filing in hoping that they wouldn’t stop working, and they are jerks.
I agree Sandy.
I hope the judge puts a fork in Borders. They have had years to fix their finances before calling Chapter 11. It is just ridiculous that a judge could allow them to remain open until October. Let the employees out of their hell, and away from Borders!!!
When will someone stop the fools at Border’s helm? Seriously. Enough. The way this has all played out over the past year is sickening. I worked for well over a decade with this company-or with the company that was Borders-and I am blown away by the insanity of those ‘in charge.’
Have compassion and put this dog down. What is left of what Borders was known for? Of the book selling culture? NOTHING.
I spent many years feeling blessed to work for such a wonderful company, but the final 2 years were hell. Bully management, no staffing, make books, bouncy balls, and the Borders Reward card (that we sold until customers started to come in and tell us we were closing. Borders apologized later in the day for, essentially, not anticipating the leak online. Seems they forgot about THAT computer/ social media thing.)
‘You people all act like a bunch of librarians….” was a comment I heard repeatedly by the Circuit City, Best Buy, etc.–primarily men–who were brought in to replace the book leadership. “Books are no different than anything else–we need sales people.”
Really? Hm. How is that working for you Borders?
I am not a bitter person, and yet, I sound bitter from this post. I, like hundreds of other Borders employees, just loved my job and that company so damn much–it’s a difficult task to not sound bitter.