Grey’s Anatomy star Patrick Dempsey has won a bid to purchase Tully’s Coffee, which filed for Chapter 11 bankruptcy protection last October.
Dempsey’s company, which said it beat out six other bidders, including Starbucks, will pay $9.15 million for coffee maker, according to CNN.
Tully’s Coffee operates 47 locations in Washington and California and has other franchises across the country.
“It was a brand that needed to be preserved. There were 500 jobs at stake and it just felt right,” Dempsey told CNN. “I’m really excited about this.”
Starbucks, however, told CNN that the final determination certifying the winning bid for Tully’s would not occur until a bankruptcy hearing this week. Starbucks made an offer for some of Tully’s assets, while another bidder made an offer for all other assets, according to CNN.
The combined total of the Starbucks bid and the other “back-up bid” was $10.56 million, Starbucks said in a statement.
Tully’s cited “rising commodity prices and challenging lease economics” in their bankruptcy documents.
Chapter 11 bankruptcies allow businesses to continue to operate while looking for investors and buyers. Much like a Chapter 11 bankruptcy, Chapter 13 and Chapter 7 bankruptcies can help people by stopping collection attempts.
Post bankruptcy life can be less stressful for those who are facing foreclosure. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy attorney