The parent company of Tully's Coffee is seeking Chapter 11 bankruptcy protection and is closing an unspecified number of its stores.
The Seattle-based coffee chain has long struggled under the shadow of Starbucks Corp.
TC Global Inc. filed for bankruptcy protection Wednesday to help eliminate some costs that are keeping the company from being profitable.
It said it is struggling with lease obligations, commodity costs and underperforming stores. The company has more than $3.7 million in debt, according to its court filing.
A hearing is set for Friday in U.S. Bankruptcy Court for the Western District of Washington in Seattle.
Tully's opened its first store in 1992, and has about 175 locations in nine states and nine in Asia.
The company expects to emerge from bankruptcy protection sometime in 2013.