Patrick Dempsey, the actor who helped Global Baristas Investment Group outbid Starbucks Corp. for bankrupt Seattle retail chain Tully’s Coffee this summer, is severing his ties.
Tully’s, a 17-unit chain in the Seattle area, had been owned by Green Mountain Coffee Roasters of Vermont (Waterbury, Vt.) since 2008. Global Baristas acquired the retail part of the business for $9.2 million, outbidding both Starbucks and the Philippine company AgriNurture Inc.
Green Mountain will hold onto the wholesale side of the Tully's brand, which includes coffee in bags and single-serve packs sold in supermarkets and other stores.
Dempsey, who identified himself as a “member and manager” of Global Baristas, has also reportedly dropped his lawsuit with company owner Michael Avenatti.
Dempsey had filed a lawsuit against Avenatti last week, on behalf of Global Baristas, claiming the company owner borrowed $2 million against Tully’s assets without telling Dempsey, rather than fully financing the coffee chain as promised.
According to The Seattle Times, Dempsey called the 15 percent interest rate on the loan “exorbitant” and sued for Avenatti to fund Tully’s operations and meet its working capital needs. Avenatti is calling the situation a misunderstanding.
Dempsey was to serve as the spokesperson for Tully’s. While he held a managerial title at Global Baristas, he never invested money in the coffee chain. Avenatti said he will continue moving forward with other investors and the rest of the management team