Tully’s Selling Coffee Shops to Kachi for $4.3 Million
Tully’s Coffee Corp. has seen its ups and downs recently. The company filed for Chapter 11 bankruptcy protection in October, and announced Wednesday that it will sell its coffee shops in Washington and California to Kachi Partners, a Colorado-based entrepreneurial financial group. Kachi was one of 13 companies that expressed interest in purchasing Tully’s, and one of the 56 potential buyers that were contacted.
Subject to court approval, the acquisition will close by the end of December. Kachi plans to continue to operate the existing coffee shops under the Tully’s name.
Business Booming for Costco; Announces Special Dividend of $7 Cash
Costco Wholesale Corp., headquartered in Issaquah, announced the dividend as a result of its “strong balance sheet and favorable access to the credit markets.” This special dividend is in addition to the 27 cent dividend Costco announced it would pay shareholders last month.
Costco also stated that its November sales rose 6 percent, with total net sales increasing from $7.51 billion last year to $8.15 billion this year.
SEC Contemplates Suit Against SAC Capital Advisors
Steven A. Cohen, founder of SAC Capital Advisors, placed a call to the fund’s investors on Wednesday morning after SAC received a Wells notice from the SEC, an indication that federal regulators are considering an enforcement action (civil not criminal) against the $14 billion hedge fund. Cohen reassured investors that the firm acted appropriately and thanked the investors for their continued support.
SAC has been in federal prosecutor’s sights for the last five or so years, especially since the crackdown on insider trading began. Over the last 20 years, Cohen has accumulated a multibillion-dollar fortune, and growing SAC into one of the larger hedge funds in the world with roughly 1,000 employees all over the world.
Mergers and Acquisitions
Lehman Sells Property Firm in $6.5 Billion Deal
The Lehman Brothers estate agreed on Monday to sell Archstone, a widespread apartment complex company, to its real estate rivals, Equity Residential and AvalonBay Communities, for roughly $6.5 billion in cash and stock.
Archstone is Lehman estate’s single largest asset. Lehman is continuing to wind itself down and pay off the multitude of creditors. Previously, Lehman was planning to go public with Archstone, a deal that was reported to likely raise $3.45 billion in the offering. These plans obviously changed. As a result of the sale, the Lehman estate will be the single biggest investor in Equity Residential, with 9.8 percent, and in AvalonBay, with 13.2 percent.