"Caffè Nero North America emerged as the winning bidder in Compass Coffee's Chapter 11 sale process this week, with a bid valued at $4,764,988, according to court documents. The winning price exceeds the $2.9 million "stalking horse" offer that Caffè Nero made after Compass Coffee's initial bankruptcy filing in early January. The Washington D.C.-area specialty coffee company described the transaction as an asset purchase that included "substantially all" inventory, equipment and intellectual property, plus certain leases and contracts."
"Compass co-founder and CEO Michael Haft told The Washington Post that Caffè Nero is expected, at least initially, to continue operating 17 D.C.-area cafes under the Compass name, while beginning transition conversations with managers and staff. Numerous Compass Coffee locations have closed within the past two weeks. A hearing to approve the sale is scheduled for Feb. 26 in the U.S. Bankruptcy Court for the District of Columbia . If the sale is approved and closes, Caffè Nero would become the new owner of substantially all Compass Coffee assets."
Caffè Nero North America won Compass Coffee's Chapter 11 auction with a $4,764,988 bid, surpassing a $2.9 million stalking-horse offer. The transaction is structured as an asset purchase that includes substantially all inventory, equipment, intellectual property, and certain leases and contracts. Caffè Nero is expected, at least initially, to continue operating 17 D.C.-area cafes under the Compass name while transition conversations begin with managers and staff. Numerous Compass Coffee locations have closed in recent weeks. A court hearing to approve the sale is scheduled for Feb. 26. Next Gen Coffee Enterprises LLC submitted a $4,663,000 backup bid. Compass filed Chapter 11 amid a founders' dispute and related litigation.
Read at Daily Coffee News by Roast Magazine
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