WASHINGTON (7News) — Compass Coffee, the coffee chain founded in D.C. in the early 2010s, filed for Chapter 11 Bankruptcy on Tuesday in hopes of selling parts of the chain as it faces legal challenges from a cofounder, several landlords, and vendors.
The company, which has 166 employees and operates 25 cafes across Northern Virginia, D.C., and southern Maryland, said it plans to operate all stores as normal during the Bankruptcy process.
“Over the last decade, Compass has grown to 25 cafes across the DMV. Our original 7th Street cafe has never closed – not for a single day,” a portion of a statement from co-founder Michael Haft read. “Our spaces have been the setting for first dates that turned into marriages, interviews that led to dream jobs, and everyday moments shared over millions of cups of coffee. We have supported countless community causes, shipped coffee to all 50 states and to troops deployed overseas, and helped thousands of people navigate first jobs, in-between jobs, and next chapters.
The chain founded by Haft and Harrison Suarez said customer numbers have remained low since the COVID pandemic, and struggles remained despite also operating a roastery and distribution business. Documents showed the company began putting itself up for sale in 2021, and that the bankruptcy filing was made after reaching an agreement with a possible company.
Compass leadership has requested to end the leases on several properties, including its former headquarters and roastery on Okie Street, Northeast, which was closed in Dec. 2025. The company has seen previous legal disputes with Ivy City over the roastery location.
Suarez sued Haft and his father in 2025, claiming the pair lied about Suarez having an equal share in the company. Suarez, who met Haft in college and both served as Marines, said he was cut from the company in 2021.
Documents show the company has 100-200 creditors. EagleBank, the Small Business Administration, Square, and inKind have filed statements claiming a total of $1.7 million in liens on Compass Coffee.
Compass also owes roughly $5.2 million to over insider and outside investors on unsecured convertible notes, while about 100 others have claims totaling $4.8 million. Most of the $4.8 million comes from past due rent, unpaid purchase amounts for store acquisitions, and unpaid accounts to suppliers and other vendors, according to a statement filed by Haft.
Filing for Chapter 11 could allow Compass to pay back its lenders, both secured and unsecured, according to Haft in a legal filing.