SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
August 15, 1997
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Coffee People, Inc.
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(Exact name of registrant as specified in its charter)
Oregon 0-21397 93-1073218
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(State or other (Commission File No.) (IRS Employer
jurisdiction of Identification No.)
incorporation)
15100 SW Koll Parkway, Suite J, Beaverton, Oregon 97006
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(503) 672-9603
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ITEM 5. OTHER EVENTS.
Effective August 15, 1997, Steven P. Crantz resigned as Vice President --
Development of Coffee People, Inc., an Oregon corporation ("Coffee People").
Coffee People announced Mr. Crantz's resignation in a press release dated August
18, 1997, a copy of which is attached as an exhibit to this Current Report.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
2.1 Press release, dated August 18, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COFFEE PEOPLE, INC.
(Registrant)
Date: August 19, 1997 By: /s/ Kenneth B. Ross
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Kenneth B. Ross
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Page
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2.1 Press release, dated August 18, 1997. 5
FOR IMMEDIATE RELEASE
FOR MORE INFORMATION, CONTACT:
Ken Ross Dolores Chenoweth
Chief Financial Officer Investor Relations
503-672-3300 503-291-1924
COFFEE PEOPLE REDUCES HEADQUARTERS STAFF TO LOWER COSTS;
VICE PRESIDENT OF DEVELOPMENT RESIGNS
PORTLAND, OREGON... August 18, 1997 --- Coffee People, Inc. (NASDAQ:MOKA), a
specialty coffee retailer and operator of coffee houses, said today that its
vice president of development has resigned. In total, the company has reduced
its Portland headquarters staff by a total of nine positions during August.
Steven P. Crantz resigned from the company effective August 15. He joined
Coffee People in 1996 and was responsible for site selection and new store
development.
"The staff reductions reflect actions to reduce costs as part of our goal
to return the company to profitability," said Taylor H. Devine, president and
chief executive officer of Coffee People. The company's second quarter results,
reported in July, included a write off of $5.5 million related to selling or
closing seven stores outside its major markets in Oregon and Arizona.
The majority of the eliminated positions were related to supporting new
store development. The action lowers Coffee People's Portland headquarters staff
to 22.
"We're continuing to identify additional cost-cutting measures that will
not affect the quality of our products and high level of customer service in our
retail outlets," said Devine. "We have a strong customer franchise in our Oregon
and Arizona operations which generated approximately $2.0 million in sales in
July."
Devine also said that one of the company's Coffee Plantation mall-based
stores in Arizona is closing at the end of August upon expiration of its lease.
The store's closure is not expected to have a material adverse effect on the
company's revenues or income.
Coffee People, in business since 1983, currently operates 47 coffee houses,
Motor Mokas (R) and Aero Mokas (R). The company employs approximately 725
throughout its operations.
This news release contains forward-looking statements that involve a number
of risks and uncertainties. Actual results may differ materially from projected
results. For a complete discussion of the risks associated with forward-looking
information, refer to the Risk Factors contained in the company's 10-KSB for
1996 and the Registration Statement on Form SB-2 as filed with the Securities
and Exchange Commission effective September 25, 1996.
