Caffe Nero Makes Bid to Acquire Compass Coffee in D.C.

"In a Jan. 23 court filing, Compass Coffee said it selected Caffè Nero North America, Inc. as the "stalking horse" purchaser, with an offer to buy "substantially all" of Compass's assets for a $2.9 million cash purchase price, plus the assumption of certain liabilities. The stalking horse bid sets a floor for a potential auction if other bidders come to the table, with a proposed bid deadline of Feb. 12."

"Compass Coffee originally filed for bankruptcy protection on Jan. 6, saying it planned to restructure debts, pare back leases and stabilize operations while keeping cafes open. The company said it was closing its Ivy City roastery and relocating roasting to its original Shaw location as it refocused on "core locations." Prior to any consolidation, the company had expanded to more than two dozen locations across the DMV since launching in 2014."

"The company pointed to post-pandemic shifts in consumer behavior as a reason for its financial struggles. The coffee company is also in the midst of a dispute between its founders. In January 2025, co-founder Harrison Suarez sued Compass, Michael Haft and another owner in federal court, alleging fraud and other claims. That case is ongoing. Caffè Nero was founded in London in 1997 by Gerry Ford, and the company says it has more than 1,000 coffee houses across the U.S., Europe and the Middle East."

Caffè Nero North America was selected as the stalking-horse purchaser for Compass Coffee with a $2.9 million cash offer plus assumption of certain liabilities. The stalking-horse bid establishes a floor for a potential auction with a proposed bid deadline of Feb. 12. The agreement is structured as an asset purchase covering substantially all inventory, equipment, intellectual property, and certain leases and contracts. Compass Coffee filed for Chapter 11 on Jan. 6 to restructure debts, reduce leases, and stabilize operations while keeping cafes open, closing its Ivy City roastery and consolidating roasting to Shaw. Post-pandemic consumer shifts and a founders' legal dispute have pressured the business.

Read at Daily Coffee News by Roast Magazine