Compass Coffee files for Chapter 11 bankruptcy

Company Overview - Compass Coffee, founded in 2014 by two former U.S. Marines, focuses on approachability and in-house roasted blends rather than single-origin coffee [2] - The company has expanded to 25 locations across Washington D.C., College Park, Maryland, and Virginia [2] Bankruptcy Filing - Compass Coffee has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Columbia [1] - The company reported assets between $1 million and $10 million and liabilities between $10 million and $50 million, including nearly $2 million owed to landlords and unsecured creditors [4] Impact of COVID-19 - Sales at Compass Coffee's core downtown D.C. locations are down more than 50% from pre-pandemic levels, largely due to the area's slow recovery from COVID-19 [3] - Declining consumer traffic and federal workplace reductions have further impacted business, with a record number of restaurant closures in D.C. in 2025 due to government shutdowns and reduced tourism [4] Restructuring Plans - As part of its restructuring plan, Compass Coffee intends to close 10 unprofitable locations and terminate leases, including its former headquarters and roastery [5] - The company plans to continue operating its remaining locations during the restructuring process [5] Legal Issues - The bankruptcy filing follows several legal disputes, including a severed relationship between founders Haft and Suarez over accusations of misusing pandemic relief funds [6] - Multiple lawsuits from landlords over unpaid rent have also been filed, contributing to the need for Chapter 11 protection [7]