Veteran-Founded Coffee Chain Files for Chapter 11 Bankruptcy

​Compass Coffee, LLC, the popular coffee concept from Washington, D.C., enters Chapter 11 restructuring, citing reduced traffic and financial pressures.

Written By Twinkle Jha
News Writer
​Compass Coffee, LLC filed a bankruptcy petition on January 6, 2026 (Source: Created on Canva)​

Compass Coffee, LLC has filed for Chapter 11 bankruptcy protection. The Washington, D.C.-based coffee chain seeks to restructure ‘parts of its business’ while cafés remain open during the process. The filing comes nearly a year after co-founder Harrison Suarez sued Michael Haft and his father, Robert Haft.

Compass Coffee, LLC Files for Chapter 11​

Latest court records on PACER show that Compass Coffee, LLC submitted its voluntary petition in the U.S. Bankruptcy Court for the District of Columbia. The Chapter 11 petition was filed by attorney Jennifer Ellen Wuebker of Hunton Andrews Kurth LLP on January 6, 2026.​

Post-Pandemic Changes Contribute to the Bankruptcy​

Michael Haft, the founder and CEO of Compass Coffee, LLC, confirmed the bankruptcy on his social media handle. In the post, Haft reflected on founding the company after returning from service in the Marine Corps. After serving the greater Washington, D.C. metro area for years, Compass Coffee, LLC was unable to handle the post-pandemic shifts.

While the coffee chain’s downtown locations were once crowded with patrons, foot traffic declined, work patterns shifted, and the economics of urban cafés evolved. Haft said those changes ultimately led the company to pursue a Chapter 11 restructuring.

The founder added that the coffee brand has grown to 25 cafés across the DMV in the last ten years. Plus, the original 7th Street café never closed for a single day. He added that all Compass Coffee cafés will remain open during the Chapter 11 process.

Background: Co-Founder Lawsuit

The latest Chapter 11 process is not the first roadblock in the journey of Compass Coffee, LLC. Prior to this, the coffee brand made headlines last year when co-founder Harrison Suarez filed a lawsuit against Michael Haft and his father, Robert Haft.​

Suarez publicly addressed the dispute on social media in 2025. He stated that along with Haft, his close friend from the Marines, he had co-founded the coffee brand in 2013. However, in July 2021, he was ‘forcibly exited’ by Haft and his father without being compensated for his equity. He later filed a lawsuit in the U.S. District Court for the District of Columbia.

Company Background

​Compass Coffee, LLC was founded in 2014 by two former Marines, Michael Haft and Harrison Suarez. Originally founded in the Shaw neighborhood of Washington, D.C., the brand currently operates nearly 25 cafés across the DMV.​

Through the years, Compass Coffee, LLC has served its roasted coffee to several restaurants, hotels, and government institutions (such as the White House). Additionally, the coffee brand has shipped coffee to almost all 50 states in the country and to troops deployed overseas.

Proceedings So Far

Attorney Jennifer Ellen Wuebker, on behalf of Compass Coffee, LLC, submitted an 18-page voluntary petition for a fee amounting to $1,738, the filing shows.

Kristen S. Eustis, an attorney with the U.S. Trustee for Region Four, submitted a Notice of Appearance and requested the court to provide her with all notices and filings in the case.

After this, attorney Jennifer Ellen Wuebker, while representing the coffee brand, submitted a motion to extend the deadline to file schedules or provide required information. Schedules of Assets and Liabilities and Statement of Financial Affairs are some of these documents.

She also filed a motion for continuance of utility service and approval of adequate assurance of payment to the utility company under Section 366(b).

A hearing for January 7 is also scheduled for Compass Coffee, LLC, related to a motion to use cash collateral, motion to authorize the payment of prepetition wages, and a motion to authorize maintenance of the existing cash management system.

The coffee brand further filed a motion authorizing it to maintain existing insurance policies and honor all obligations in respect thereof. A motion regarding the payment of tax and fee obligations was submitted as well. Several motions are scheduled to be heard on January 7.

​Here are other details of the Chapter 11 case:​

  • Filing Date: January 6, 2026
  • Court and Jurisdiction: U.S. Bankruptcy Court for the District of Columbia
  • Type of Filing: Active, Voluntary Petition
  • Chapter: 11
  • Case Number: 1:26-bk-00005
  • Estimated Assets: $1,000,001-$10 million
  • Estimated Liabilities: $10,000,001-$50 million
  • Reason for Filing: Restructure business under court supervision

Court records further show that Compass Coffee, LLC currently owes roughly 100 to 199 creditors in total, the petition shows.

The petition adds that attorney Jennifer Ellen Wuebker, while representing Compass Coffee, LLC, also submitted motions to authorize the debtor to pay certain prepetition claims of critical vendors. Another motion filed in the court was regarding the continuance of customer programs.

The company also filed a motion to reject certain unexpired non-residential leases. Attorney Jennifer Ellen Wuebker then submitted a motion to expedite the hearing and shorten the time period of the hearing of the first day motions. Michael Haft, the founder and CEO, signed a declaration in support of the Chapter 11 Petition and First Day Pleadings of Compass Coffee, LLC.​

While cafés remain open, Compass Coffee LLC’s bankruptcy filing hints at a strategic reset, not an immediate shutdown. The Washington, D.C.-based brand is using Chapter 11 to reset operations and stabilize its finances.

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Twinkle Jha is a content writer passionate about crafting engaging and informative pieces for diverse audiences. She holds a degree in Journalism & Mass Communication that helps her create news-based articles related to restaurants, retail, and real estate in the US. With five years of writing experience, Twinkle has a strong base for her research, allowing her to create compelling content. Her keen eye for detail and creative approach make her writing stand out. When not working, she loves to watch movies.
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