Compass Coffee plans to close one of its two cafes in Ballston after filing for bankruptcy yesterday (Tuesday).
A coffeehouse at 4300 Wilson Blvd is one of 10 locations where the regional cafe chain is seeking to cancel its lease as soon as Jan. 30, according to a motion filed in D.C. bankruptcy court.
Compass Coffee is also proposing to close another location at 7393 Lee Highway in West Falls Church.
These are the only Virginia locations included on the company’s list — leaving another Ballston location at 4100 Wilson Blvd untouched, along with two other spots at 3003 Washington Blvd in Clarendon and 4710 Langston Blvd in the Waverly Hills neighborhood.
Seven of the other stores on the chopping block are in D.C., while a final one is in College Park, Md.
By cancelling the leases, the company would be in a better position to pay off its debts, which are estimated at between $10 million and $50 million, the company’s bankruptcy petition says.
“[Compass Coffee] has conducted a thorough analysis and identified the cafés … as those that are likely to continue to drive losses for the debtor, and as a result, should be rejected,” the company’s counsel wrote.
Compass Coffee’s filing outlines a variety of debts, including nearly $2 million in back rent and landlord payments, more than $700,000 for coffee beans and more than $160,000 for oat milk.
The company is currently being sued by landlords, vendors and even its co-founder, according to various reports, in addition to pending labor cases before the National Labor Relations Board.
The 4300 Wilson Blvd location was still in operation yesterday after the bankruptcy filing was submitted in federal court.
After its founding in 2014, Compass Coffee quickly blossomed into a popular, locally-owned alternative to international coffee chains like Starbucks or Dunkin’. As of today, the brand has more than two dozen coffeehouses across the D.C. area.
The coffee chain did not respond to a request for comment.
