TC Global, Inc. (dba Tully's) announced that it has entered into a "stalking horse" Asset Purchase Agreement (APA) with Kachi Partners (Kachi), an entrepreneurial finance group. Tully's submitted the APA to the bankruptcy court on Nov. 26 and intends to conduct a court-supervised auction of its business under Section 363 of the U.S. bankruptcy code later this year.
"With this agreement in place with Kachi, we believe the business is positioned to emerge from this process in early 2013 and that we will be a much stronger company as a result," said Scott Pearson, president and CEO of TC Global, Inc., in a prepared statement.
Tully's filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Oct. 10, 2012, and closed nineteen unprofitable locations.
Neither the bankruptcy nor the APA affect the wholesale and online Tully's Coffee® business and brand, which were purchased by Green Mountain Coffee Roasters, Inc. (GMCR) in 2009. TC Global intends to continue sourcing coffee for its retail stores under its existing supply and licensing agreements with GMCR.