TV actor Patrick Dempsey and his business partner in the venture that acquired Tully's Coffee out of bankruptcy have dissolved their partnership.
On Friday, Dempsey and California lawyer Michael Avenatti said their legal dispute has been "fully resolved to the satisfaction of all concerned."
Court documents filed Aug. 20 in Dempsey's King County Superior Court lawsuit against Avenatti said the lawyer initially was the sole owner of Global Baristas LLC. The documents say Dempsey joined Global Baristas a short time later. The ownership group prevailed against other bidders including Starbucks in an auction last January that included more than 40 Puget Sound-area Tully's stores.
In the court papers, Dempsey said his decision to participate in Global Baristas was based, in part, on his understanding that Avenatti was committing sufficient cash to both fund the acquisition and provide working capital to operate the stores. The deal finally closed June 30.
Instead, Dempsey alleged that Avenatti used Global Baristas to borrow $2 million for working capital without telling him.
"Although Michael and I have dissolved our business relationship, I am happy to have been a part of the effort that brought awareness to the Tully's brand. I wish the Company and Michael all the best," said Dempsey.
"I am happy that we have resolved our differences and have put this behind us, and I know we each wish the other well in our respective future endeavors." Avenatti added, "The management team at Tully's is extraordinary and the future for the company has never been brighter. Great things are on the horizon for Tully's and Seattle.”
Previous Tully's owner TC Global Inc. filed for Chapter 11 bankruptcy protection in October, citing lease obligations and underperforming stores, and the “Grey’s Anatomy” star stepped in to buy the bankrupt firm.