Compass Coffee Files Chapter 11, Plans to Close Underperforming Shops

Compass Coffee's Chapter 11 filing on Jan. 6, 2026 laid bare the pressures facing an urban-focused cafe network still adapting to post-pandemic consumer patterns. The veteran-founded chain traces its footprint across Washington, D.C., Northern Virginia and Southern Maryland with roughly two dozen storefronts; the restructuring proposal would preserve about 15 cafes while rejecting leases for about 10 to 11 underperforming sites.

The company attributed its strained cash flow to persistently low downtown and commuter foot traffic, a common challenge for city-center dependent businesses as office and transit patterns settle into new norms. Compounding the revenue slump are multiple legal disputes, including conflicts with a co-founder and with several landlords. The filing specifically flags millions in unpaid rent tied to its Ivy City roastery lease as a major strain on liquidity.

As part of the reorganization, Compass plans to move roasting operations back to its original Shaw facility, a consolidation intended to cut costs and centralize production. The filing also catalogues creditor exposure across landlord claims, the Small Business Administration and payment processors, and it contemplates a sale process or the use of a stalking-horse bidder to maximize value for creditors during restructuring.

For customers and community members, the practical implications are immediate. Locations slated for lease rejection may reduce local access to Compass beans and prepared drinks, and employees at those cafes face uncertainty while the restructuring proceeds. Local cafes, roasters and suppliers who rely on Compass as a marketplace or partner may see short-term shifts in demand and distribution.

Verify store hours and product availability with your neighborhood cafe before visiting, and call ahead for any special orders or bean purchases. Follow Compass’s official channels for updates on which locations will remain open and where roasting will be centered during the reorganization. If you want to support independent coffee businesses through this period, consider buying beans directly from local roasters or attending community coffee events.

Compass’s case highlights the broader risk profile for mid-sized regional roasters and cafes that centered growth on downtown commuter traffic and long commercial leases. For anyone invested in the city’s coffee scene, the filing is a reminder that real-estate obligations and legal disputes can ripple quickly through operations, employees and neighborhood access to local coffee.