Strapped for cash and eager to renegotiate its real-estate leases, Tully’s Coffee filed for bankruptcy protection Wednesday, the latest step in a years-long struggle for the Starbucks wannabe, our online news partner The Seattle Times reported Wednesday.
Although Tully’s is no longer burdened by the enormous debt that plagued the chain for years, it is low on cash. Tully’s had just $1.8 million in cash on Jan. 1, the most recent date for which information is available, down from $2.8 million a year earlier.
In the past three weeks, Tully’s has closed eight unprofitable stores, including the one in downtown Edmonds. A total of 57 company-run stores remain, nine of which Tully’s plans to close on Sunday. Roughly 70 other Tully’s stores, mostly scattered around the western U.S., are run by franchisees and licensed partners.
You can read the complete Times story here.
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