Baristas Offers to Acquire "Tully's"
11 Dec, 2012, 06:20 ET
SEATTLE, Dec. 11, 2012 /PRNewswire/ -- Baristas Coffee Company, Inc. (OTCPK: BCCI) announced that it has filed an offer to purchase all of the assets of TC Global, Inc. DBA Tully's. A new company "Baristas Acquisition Partners, Inc." has been formed to complete an offer which, if accepted by the Court, will become a wholly owned subsidiary of BCCI and is backed by current Tully's shareholders and other investors. The Bankruptcy Court has set Jan. 11, 2013 as the hearing date for approval of the sale of Tully's assets. The BAPI proposal would continue to maintain and operate the Tully's locations with the existing employees under the Tully Coffee brand.
On October 10th, 2012 TC Global, Inc., "Tully's", filed for protection under Chapter 11 of the federal Bankruptcy Code in order to address issues that were preventing it from being profitable. Since filing they have closed unprofitable locations, reduced overhead, secured additional working capital, and through the bankruptcy they will be able to eliminate debt, certain liabilities and unprofitable legacy leases.
Barry Henthorn , CEO of Baristas, stated, "We are overwhelmed with the support we have received both emotionally and financially from existing shareholders of Tully's and many other members of the community. Our offer is the only one that allows any ongoing benefit to the approximately 6000 shareholders and does so while maximizing the returns to the other creditors. By combining management and supply chain resources it is expected that the combined entities of Baristas and Tully's will be profitable and that operations from just current locations alone will generate in excess of $25 million in revenue and approximately $2 million in profits during 2013. This acquisition will also allow further distribution of other Baristas products, such as our new Ice Cream line and other products under development."
About Tully's: Tully's was founded in 1992 and currently operates 47 company-owned stores in Washington and California as well as 5 franchised locations and 58 licensed locations throughout the Western US. Tully's also has 9 franchised locations in Asia; 4 stores in Singapore, 3 locations in South Korea and 2 in the Philippines, with the ability to franchise and/or license additional locations throughout Asia, Europe, the Middle East and other regions around the world. There are also in excess of 400 locations in Japan that Tully's sold the rights to and no longer receives any economic benefit. Tully's also operates or franchises smaller footprint stores in special venues such as on the premises of manufacturing facilities (Boeing), as well as, kiosks and cafes located in grocery stores, hotels, hospitals, airports, and on university campuses. Tullys has approximately 6000 shareholders.
About BAPI: Baristas Acquisition Partners, Inc. (BAPI) was formed specifically to complete the acquisition of "Tully's" TC Global via a 363 transaction in the US Bankruptcy court. BAPI consists of several current Tully's shareholders, top Financial Analyst, executives from the coffee industry, Baristas (BCCI) shareholders, investment bankers, lawyers, professional athletes, and general investors who have combined their resources in order to complete this acquisition. BAPI will continue to consider additional participants up until the time of the sale.
About Baristas Coffee Company (BCCI): Headquartered in the Seattle, Washington area, Baristas Coffee Company, Inc. was formed to create a national brand of drive-thru espresso stands. BCCI is accomplishing this by acquiring established businesses that fit its model, opening new locations, and by franchising. Baristas has separated itself from the competition with its "theme" of joining attractive female baristas in entertaining costumes preparing the finest beverages available on the market. Baristas can currently be found in six greater Seattle area locations as well as in Arizona, Texas, Florida, and Montana. Your state, Coming Soon!
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SOURCE Baristas Coffee Company, Inc.
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