Caribou Coffee, based out of Brooklyn Center, will close 80 underperforming stores and reopen another 88 stores as Peet's Coffee & Tea, the Star Tribune said.
The news comes after the German private equity group Jon A. Benckiser purchased the two companies about four months ago, the Minneapolis St. Paul Business Journal said.
Nationwide, Caribou will see 26 percent of stores closed or rebranded, while only 3 of 201 stores are being closed in the Twin Cities, its largest market, the Star Tribune said.
Behind Minnesota, Caribou's second-largest market was Illinois with a total of 66 stores, MSPBJ reported.
A select number of Caribou coffeehouses in Ohio, Michigan, Pennsylvania, Washington, D.C., Maryland, Illinois, Georgia and eastern Wisconsin are expected to be the stores that will be shut down and reopened as Pete's Coffee & Tea stores, the Star Tribune said.
"Over the past few months, we have revisited our business strategy, have taken a hard look at our overall performance, and have made decisions that best position us for long-term growth," Caribou CEO Michael Tattersfield said in a statement, the Star Tribune reported.
According to the MSPBJ, all of the closings were effective starting April 14. As of last fall, Caribou owned about 400 locations, with about 200 additional franchises, MSPBJ said.