Chapter 11 and Store Closures
On October 10th, 2012 we filed to reorganize our business operations under federal bankruptcy law. The filing coincides with a plan to close a number of our underperforming locations and to keep operating those that make financial sense for the future of our business. This was a carefully considered decision made by our Board of Directors and Leadership Team following extensive analysis of all available options, and after consulting with the highly regarded Deloitte Corporate Restructuring Group.
We have multiple objectives for proactively addressing significant challenges to our company under Chapter 11 of the federal Bankruptcy Code, including the elimination of significant issues that were preventing us from being profitable. In filing, we can lower operating expenses by relieving legacy costs as well as effectuate a restructuring of the balance sheet by securing working capital. With this plan, we anticipate emerging from Chapter 11 sometime in 2013.
In addition to filing for reorganization, we plan to close a number of unprofitable stores in the near future. We are currently in the process of identifying those stores, but we will continue to have a formidable presence in the Puget Sound area.
For more information regarding the Chapter 11 filing, please visit www.omnimgt.com/TullysCoffee, or call (866) 989-3039.