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Caribou won't open coffee shops inside revamped JCP stores

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Caribou Coffee Co. is no longer pursuing a partnership with J.C. Penney Co. to set up shops inside its stores, Bloomberg reports.

The Brooklyn Center-based coffee chain “does not have plans to move forward with a partnership at this time,” according to an email from CEO Michael Tattersfield. He did not say why Caribou was backing out.

Rumors of a possible partnership started back in September after Caribou was featured in a prototype of J.C. Penney's next-generation stores.

The struggling Dallas-based retailer is still looking for a vendor that would "offer more options in food and beverage," Business Insider reports.

J.C. Penney CEO Ron Johnson is a former executive at Target Corp. -- which has long featured Starbucks Coffee shops in its stores.

Caribou Coffee was bought late last year by the German conglomerate Joh. A. Benckiser Group for about $340 million.

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