This is very sad. From our friend Melissa Allison:
Tully’s Coffee struggled with debt until it sold its wholesale business to Green Mountain Coffee Roasters last year. Now it is burning through the cash left over from that deal.
“Based on our current projections, we expect to deplete our cash resources during the first quarter of Fiscal 2012 [which ends June 30, 2011],” its parent company, TC Global, said in a securities filing this month.
The coffee shop chain needs more capital in the next six to nine months, it said. Tully’s is considering raising money with debt or equity, reorganizing and/or selling some of its stores.
Started in 1992, Tully’s business model was to open shops directly adjacent Starbucks locations. We will remember Tully’s as that place we went to break up with our girlfriends and gay boyfriends. The Tully’s Experience stands as a towering monument to the economic hubris that WAS the 1990s: a secondary aftershock boom chain to do battle in the trenches of frozen chai, green tea scones and roasts to rival Frenchy from Grease. Tully’s, we hardly knew ye, or perhaps we knew ye too well. You still lead in grocery sales, but unless something drastic happens, it seems like you might be on the way out.
In the meantime, enjoy Tully’s amazingly ridiculous website. Tully’s: Worth Discovering