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

“Compass Coffee Original Location” by Jackiegeorges92321 is licensed under CC BY-SA 4.0.

UK-born coffee chain Caffè Nero has put in a bid to buy Compass Coffee’s assets following the Washington D.C.-area chain’s Chapter 11 bankruptcy filing earlier this month. 

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.

The Caffè Nero agreement is structured as an asset purchase, not an equity purchase, according to court records. The assets listed include “substantially all” of Compass’s inventory, equipment and intellectual property, along with certain leases and contracts. 

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.

The Nero group has a long history of acquiring smaller specialty-focused chains, including 29 Aroma coffee shops in 2002, 12 Coffee Republic shops in 2004, approximately 43 Harris + Hoole sites in 2016, multiple Coffee#1 locations in 2019 and 21 locations of 200 Degrees in 2024. 

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