PROVIDENCE, R.I. (AP) – The Canadian company Tim Hortons submitted the highest bid for the bankrupt Bess Easton bakery and coffee chain on Friday, submitting a cash offer of $41.6 million to top an offer by a competitor backed by Dunkin’ Donuts.

A lawyer representing Bess Eaton closed the bidding after BE Network Acquisitions LLC, a regional group of Dunkin’ Donuts franchisees, decided not to match or exceed Tim Hortons’ offer. BE Network’s final offer was $40.8 million. A U.S. Bankruptcy Court judge will have to approve any sale.

Tim Hortons had originally offered $35.5 million for 42 of Bess Eaton’s 48 retail stores. The chain has stores in Connecticut, Massachusetts and Rhode Island.

Meanwhile, Glanz Properties, of Brookline, Mass., offered $2 million for Bess Eaton’s bakery in Westerly. Another company, Heartlab, bid $1 million for Bess Eaton’s office buildings in Westerly. Heartlab is a maker of medical imaging systems. Company President Richard Petrocelli said the acquisition would help his company to expand.

AP-ES-04-23-04 1541EDT