Tully's Coffee Files For Bankruptcy



Tully's Coffee, which in April sold its downtown Boise franchises but still operates three locations in the Treasure Valley, has filed for Chapter 11 bankruptcy protection in a Seattle federal court.

The Seattle-based company has struggled with cash flow and real estate issues, according to the Puget Sound Business Journal, and has been closing stores around the country. But Tully's officials were quick to add that they were still operating 48 company-run stores in Idaho, Arizona, California, Colorado, Montana, Oregon and Washington.

According to court filings, Tully's Coffee is more than $3.7 million in debt, most of which is owed to vendors, including a $347,000 bill from Green Mountain Coffee Roasters of Vermont.

After emerging from a previous debt problem in 2009, Tully's added dozens of stores in the United States and Asia.


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