Seattle’s Best Opposes to Border’s Cafe Operations Extension

by San Antonio Attorney

Seattle’s Best Coffee, a subsidiary of Starbucks, has requested the court for protection of its brand and trademarks following the plan of Borders Group Inc. to end its licensing agreement with the company.

The company acknowledges that Borders has the right to void its lease agreement under the rules of insolvency. However, it objects to the bankrupt bookstore’s court papers that contains a request to continue the operations of the cafes for 45 days after cancellation of the agreement.

Since Borders plans to operate its own cafes or get a new vendor, Seattle’s Best wants to protect its brand from being used in promoting a different product which could be of inferior quality.

Borders has filed for bankruptcy due to shriveling sales which made it difficult for them to manage their debt load.

In court papers filed on Thursday, Borders filed for a termination of its partnership agreement with Seattle’s Best. There were Seattle’s Best cafes in Border’s stores before it closed 225 of its bookstores}.

Borders requested to end its licensing agreement saying that running its own cafes or having another vendor would reduce its expenses.

In another court papers filing on Thursday, the creditors’ committee of the company also rejected its request to be given more time to propose a repayment plan and asking for a speedy action due to the company’s $180 million losses in operations since it filed for bankruptcy.

Borders has considered selling but unfortunately there is no buyer. There were, however, hints of interest from a third party which could help the company keep its operations running, in exchange for a fraction of the business.

On June 2, both the Border’s request for extension and Seattle’s Best’s objection will be considered by Judge Martin Glenn in a hearing.

More information about Border’s Bankruptcy can be found in the San Antonio Bankruptcy section.

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