"By eliminating our owned and operated brick-and-mortar storefronts, which are cost-intensive and complicated businesses," says David Zaslav, president and chief executive officer of Discovery Communications, in a statement.

Discovery's stores are found in some of the most visible and upscale malls in the country, such as Cherry Creek Mall, in Denver; South Coast Plaza, in Costa Mesa, CA; and the Mall at Short Hills (NJ). Management expects to close the units some time by the end of the third quarter.

Licensing agreements will continue with the Hudson Group, which operates Discovery Channel Airport Stores in airports across North America. The company will also continue an agreement to sell products in Toys "R" Us stores and pursue similar arrangements with other large chains, Zaslav says.