London-Based Caffè Nero Proposes $2.9 Million Bid To Acquire Compass Coffee Following Bankruptcy Filing – CoffeeTalk

Caffè Nero, a coffee house chain based in London, has proposed a $2.9 million bid to acquire nearly all assets of Compass Coffee, following Compass Coffee’s Chapter 11 bankruptcy filing on January 6. This stalking horse bid was disclosed in a bankruptcy court filing, triggering a timeline set by the U.S. Bankruptcy Court in D.C. that allows until January 30 for parties to object to the sale, and until February 12 for other bidders to make counteroffers. An auction is scheduled for February 17, with the successful bidder and a backup announced on February 18, leading to a hearing on the proposed sale on February 26.

Caffè Nero has entered a preliminary agreement to purchase 15 stores from Compass Coffee, which is currently undergoing bankruptcy proceedings in the Washington D.C. area. A spokesperson for Caffè Nero stated the company’s intent to retain as many jobs as possible and continue operating these locations as coffeehouses. Although Caffè Nero lacks a local presence, it has over 1,000 locations in 11 countries and began U.S. operations in 2014 in Boston, with plans to increase its New England outlets.

The acquisition would provide Caffè Nero a foothold in the D.C. area, potentially allowing for future expansion in Greater Washington and beyond. However, other competitors, including Starbucks, are reportedly evaluating bids for Compass Coffee, leaving uncertainty regarding whether Caffè Nero will win the bidding process. The sale encompasses 15 leased sites that Compass Coffee aims to retain in the bankruptcy arrangement, while previously planning to cancel leases on 10 sites, including a roasting plant at 1401 Okie St. NE, entangled in a landlord-tenant dispute over unpaid rent exceeding $1 million. It has been indicated that the stalking horse bidder is contemplating the acquisition of the roasting equipment left at the Ivy City location as part of the agreement.

Read More @ WBJ