Filing Alert: Compass Coffee Chapter 11
Compass Coffee Files Chapter 11 in District of Columbia
Update (Jan. 6, 2025): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Compass Coffee, LLC.
Compass Coffee, LLC, a Washington, DC-based coffee roaster and operator of a chain of cafes, filed for Chapter 11 protection on Jan. 6 in the U.S. Bankruptcy Court for the District of Columbia.
The filing aims to facilitate a going-concern sale of substantially all assets to an undisclosed "strategic buyer with a substantial, global presence in the retail coffee business" after prepetition marketing efforts.
The company, which operates 25 cafes in the DC metro area, faced persistent financial challenges following the COVID-19 pandemic and a failed expansion into distribution. To fund the case and a proposed auction process, the debtor has secured a commitment for up to $450,000 in junior DIP financing from existing investor National Investment Group, Inc. (an entity affiliated with relatives of CEO Michael Haft), supplementing the use of cash collateral.
Compass Coffee, LLC reports $1 million to $10 million in assets and $10 million to $50 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-00005.
Top Unsecured Claims
Key Parties
Counsel:
- Jennifer E. Wuebker
Hunton Andrews Kurth LLP
Email: jwuebker@hunton.com
Signatories:
- Michael Haft – CEO
Equity Security Holders:
- Michael Haft – 52.3% Equity Interest
- Hexad LLC – 14.8% Equity Interest
- Harrison Suarez – 10.4% Equity Interest
- Colby Bartlett LLC – 8.2% Equity Interest
- National Investment Group LLC – 5% Equity Interest
- Other Minority Holders – 9.3% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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