coffee business strategies

Tully’s Coffee Corp. today scrapped its beleaguered plans to go public. Frankly, I was amazed that they were going to attempt an IPO now anyway; good to see that I was not the only one that considered taking a money-losing company that has had a string of problems public in one of the weakest markets in years to be a not so hot idea.

Earlier in the week, the company indicated that it would seek “strategic alternatives,” which I estimate will include buckets, life preservers and inflatable rafts.

Note to self: make money first, then expand.

February 7, 2008
Puget Sound Business Journal (Seattle)

Tully’s Coffee Corp. has withdrawn its plans for an initial public offering of its stock, which it said would have raised about $34.5 million.

Earlier this week, the Seattle coffee company hired investment banking firm D.A. Davidson & Co. to help it evaluate “strategic alternatives,” which may include a sale of the company or privately raising cash.

In a Thursday filing with the Securities and Exchange Commission, it cited “market conditions” for its decision to withdraw its IPO.

“We are withdrawing our proposed IPO due to continued volatility in the market. We believe that the overall market conditions are not favorable for a public offering at this time,” said Tom O’Keefe, chairman and founder, in a statement.