Company has been forced to close down 475 coffee locations of Seattle's best due to impairment of assets (Thomson Reuters , 2012). Closing down of company's stores in significant amount would result in reduction in profitability. Starbucks has caused product recalls in 2011 where US food safety and agriculture department has reported bacteria issues in ready to eat chicken meals of Starbucks. Similarly, company has recalled its different products like glass water bottles causing laceration hazard whereas safety commission of consumer products ordered to close down 530,000 units of Starbucks (Scheunemann, 2010).
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