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Compass Coffee’s West Falls Church cafe could close after the D.C.-based chain filed for Chapter 11 bankruptcy and asked a federal court for permission to reject leases at 10 locations.
The shop at the Shops at West Falls Church, 7393 Route 29, is one of two Virginia cafes the company described in court filings as unprofitable and providing no benefit to the business.
Compass Coffee argued that shedding the targeted leases would help preserve the value of its bankruptcy estate and improve its ability to repay creditors.
The filing estimates the chain’s liabilities at between $10 million and $50 million. Its debts include nearly $2 million in back rent and other landlord payments, more than $700,000 owed for coffee beans and over $160,000 for oat milk.
The company is also a defendant in several civil lawsuits filed by landlords, vendors and a co-founder. The co-founder alleges that company leaders defrauded business partners and others to enrich themselves unlawfully.
Founded in 2014, Compass Coffee expanded to 25 locations as a local alternative to larger chains such as Starbucks and Dunkin’.
Its first Fairfax-area cafe opened in 2022 at the Point50 shopping center in Fairfax City. The West Falls Church location followed in 2024 and became the chain’s second cafe with a drive-thru.
Compass Coffee is also seeking to end its lease at 4300 Wilson Boulevard in Ballston, along with leases for several locations in Washington and Maryland.
No closing date has been announced for any of the cafes targeted in the bankruptcy proceedings. A company representative did not respond to a request for comment.