Peet’s to Close Dozens of Stores by End of Month
Peet’s Coffee is set to close approximately 27 locations across California by the end of this month. This information comes directly from a representative at the company’s Emeryville headquarters. As of now, there are a total of 283 Peet’s locations operating nationwide.
Impact on California Locations
Among the closures, 135 stores are situated in the greater Bay Area. The impending shutdown affects several downtown shops, notably excluding only the Embarcadero location. Employees from two Peet’s outlets on Market Street confirmed they were informed of their closure last week, although many stores still display hiring signs.
Recent Corporate Developments
The closures follow significant changes within the company’s ownership. Recently, Keurig Dr. Pepper initiated an $18 billion all-cash bid for Peet’s parent company, JDE Peet’s. This buyout was first announced in August and subsequently financed by raising $7 billion from private equity firms in October.
Background of Peet’s Coffee
Peet’s Coffee was founded in 1966 by Alfred Peet in Berkeley, California. In the 1970s, Peet mentored three young entrepreneurs who later started Starbucks, providing them with roasted beans for their new venture. The company later came under the ownership of Jerry Baldwin, one of Starbucks’ co-founders, who took Peet’s public in 2001.
Current Ownership Structure
Peet’s now operates from Emeryville, with its roasting facility located in Alameda. Its parent company, JDE Peet’s, was created in 2019 from a merger between Jacobs Douwe Egberts and Peet’s Coffee, making it the largest pure-play coffee entity globally. According to reports, the JDE Peet’s board has fully backed Keurig’s acquisition and recommended shareholders accept the deal.
Conclusion
No reasons were disclosed for the store closures, leaving the potential relationship with Keurig’s acquisition unexplained. As Peet’s navigates these changes, customers and employees alike are left to ponder the future of their beloved coffee shops.
