Tully's Mercer Island Store, Drive-Thru to Stay Open Despite Bankruptcy Protection

Tully's Coffee filed for Chapter 11 bankruptcy protection on Wednesday and announced plans to close close nine Puget Sound stores this Sunday.

The Seattle-based chain is strapped for cash and has been working to renegotiate its leases at several locations, according to The Seattle Times. Stores in Seattle, Woodinville, Redmond, Kirkland, Tacoma and Port Orchard will close on Oct. 13 — but over 50 other stores, including a store and a Tully's-To-Go drive-thru location on Mercer Island — will remain open for now. The announcement came just a few days after the company shut the doors to its Redmond Town Center shop and two other locations in Seattle.

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Tully's CEO and Mercer Island resident Scott Pearson told the Seattle Times that Tully's is working to reduce costs by eliminating positions through attrition and renegotiating contracts with suppliers.

“We’re at a point where we need to position Tully’s for the future,” Pearson told The Times. “We need to be able to keep this company operating, and this is the best option for us.”

In addition to closing several stores, CEO Scott Pearson told the newspaper Tully's is working to reduce costs by eliminating positions through attrition and renegotiating contracts with suppliers.

“We’re challenged by a lot of different things, but the key is we need to keep as many stores as we can open and profitable and, by taking this action now, we’re in the best position to do that,” Pearson said to The Times.

Tully's appeared to be ready to expand its drink menu after applying for a liquor license earlier this year at several Puget Sound stores. Company spokeswoman Diane Geurts told Patch as recently as last week that those plans were still in the works.

Geurts also said that the company expects to be able to place the majority of employees in other Tully's locations.

"Our priority is retaining our team," Geurts said via email.

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