Starbucks to ask judge to 're-open' Tully's auction

Starbucks to ask judge to 're-open' Tully's auction

Credit: Courtesy MIKI Yoshihito via Flickr.com

A Tully's Coffee shop.

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by CHRIS INGALLS / KING 5 News

Bio | Email | Follow: @cjingalls

KING5.com

Posted on January 11, 2013 at 11:33 AM

Updated Friday, Jan 11 at 6:21 PM

Documents obtained by KING 5 show that Starbucks plans to ask a bankruptcy judge to re-open the bidding for the struggling Tully’s coffee franchise.

The request comes hours before a hearing where Judge Karen Overstreet is to decide which bidder offered the “best and highest” proposal for the Seattle-based coffee chain.

Last week, an investment group led by Grey’s Anatomy actor Patrick Dempsey was deemed to be the winning bidder.  The second-place bid was made by Starbucks and an investment partner.

The final determination of which offer is actually the best for Tully’s creditors is left with Judge Overstreet.

However, since last week’s auction, a key Tully’s business partner has dropped its opposition to the Starbucks bid.

In a filing Friday morning, Starbucks lawyer Susan Brye asked Judge Overstreet for a resolution that “reopens the auction and restarts the competitive process among qualified bidders.”

A hearing begins at 1 p.m. Friday in federal bankruptcy court in Seattle.

Starbucks filing re: Tully's bankruptcy by KING 5 News

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