Associated
Press via CBS
News
January
11, 2013
SEATTLE - The auction for the beleaguered Tully's Coffee chain concluded
Friday in federal bankruptcy court, with a judge approving the sale to an
ownership group led by actor Patrick Dempsey.
Dempsey — dubbed
"McDreamy" in the hospital drama "Grey's Anatomy" — had
claimed victory last week after an auction, but a company that teamed up with
Starbucks to bid for Tully's filed an objection.
AgriNurture Inc. had
said it was still willing to proceed with its combined bid with Starbucks of
about $10.6 million. The bid from Dempsey's company, Global Baristas LLC, which
planned to keep Tully's intact, was for $9.2 million.
At a hearing Friday
afternoon, Judge Karen Overstreet said the Jan. 4 auction was fair and no
mistakes had been made.
Dempsey said he was
"thrilled that we prevailed."
"I've been deeply
humbled by the outpouring of support from the city of Seattle and am very proud
to be a new business owner in this amazing city," he said in a statement.
"We have a lot to accomplish over the next few months and years, and I am
excited to now call Seattle my second home."
Zack Hutson, a
spokesman for Starbucks Corp., said the company respected the judge's decision.
At the conclusion of a
hearing Friday that lasted several hours, Overstreet said the auction and the
arguments presented by all sides were intricate, but it was not her job to
second-guess the decision made by Tully's executives to accept Dempsey's bid.
"Was it
complicated? Yes. Did it produce a fantastic result for this case? Yes it
did," Overstreet said.
Tully's has 47 shops
in Washington and California with more than 500 employees. It filed for Chapter
11 bankruptcy protection in October, citing lease obligations and
underperforming stores.
Tully's wholesale
business, which includes Tully's Coffee in bags and single serve K-cup packs
that are sold in supermarkets and other stores, is owned separately by Green
Mountain Coffee Roasters Inc.
Scott Pearson, CEO of
Tully's parent company, TC Global Inc., said the sale was a "step
forward."
"I think the best
part of it is we're taking care of our creditors and our employees and actually
giving something back to our shareholders," Pearson said.
Dempsey has said he
believed there is room in Seattle for Tully's and the much larger Starbucks,
which is also based there.
After winning the
auction last week, Dempsey made an appearance at a Tully's near Pike Place
Market, shaking hands with workers and greeting customers before visiting other
stores.