Starbucks Considers Selling its UK Operations

Starbucks Corp (NASDAQ:SBUX) is considering selling its UK operations as it faces competition from new operators.

The Times reported on Saturday, citing https://www.thetimes.co.uk/article/starbucks-explores-sale-of-uk-division-gmldppm6f this article. The coffee chain has asked Houlihan Lokey (NYSE:HLI) Inc. to canvass interest in its UK business, the report said, adding that the company faces competition from rival coffee chains such as Pret A Manger, Tim Hortons and Costa. Starbucks' UK business oversees more than 1000 coffee shops in the UK and employs around 4000 people, the report said. According to the Times, the company did not initiate a "formal sale process" for its UK business and continued to "evaluate strategic options" for the company's international operations. The company did not immediately respond to Reuters' after-hours request for comment. The company suspended its guidance for the fiscal year in its latest quarterly earnings report after missing Wall Street targets due to China's tough COVID-19 restrictions affecting its sales in the country. Howard Schultz continues as interim CEO while the company seeks a permanent successor as it grapples with efforts to unionize its US workforce.