Caffè Nero has been revealed as the stalking horse purchaser for Washington, D.C.-based Compass Coffee.
Compass filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Columbia in early January, with the filing stating sales are down more than 50 per cent from pre-COVID pandemic levels.
It currently operates 25 café locations and a roastery in the Washington D.C. and surrounding areas, with the bankruptcy filing stating multiple locations are also set to be shuttered.
It reported assets between US$1 million and US$10 million and liabilities between US$10 million and US$50 million.
UK-born chain Caffè Nero’s North American operation was selected as the stalking horse purchaser with an offer to buy “substantially all” Compass assets for US$2.9 million, plus the assumption of certain liabilities.
Founded in London in 1997 by Gerry Ford, Caffè Nero has since grown to operate more than 1000 locations across Europe, the Middle East, and the United States – where it opened its first location in 2014.
Prior acquisitions of smaller, specialty-focused chains include the purchase of 21 locations of UK specialty roaster 200 Degrees in 2024.
Compass Coffee was founded in 2014 by US Marines Michael Haft and Harrison Suarez.
A stalking horse bidder is the initial, preferred bidder chosen by a distressed or bankrupt company to make the first offer on its assets.
