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| Photo by doortoriver |
Borders Group had contracted with Seattle’s Best, an acquisition/ subsidiary of Starbucks, for in-store coffee shops. In February, 2011 Borders filed for bankruptcy under Chapter 11 and filed a motion to reject the Seattle’s Best license, claiming it will save $10 million a year operating the stores independently. Seattle’s Best objected, asking the court to require that Borders follow the debranding process described in the license Borders was rejecting and keep paying royalties until the debranding was completed.
The court allows rejection of the license but not until the stores are debranded, paying royalties pro-rated on a location-by-location basis, with the task to be completed by July 31, 2011.
News coverage here.
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