A Compass Coffee location in West Falls Church is one of 10 coffeehouses that could close after the D.C.-based chain filed for bankruptcy this week, according to court documents.
The store located in the Shops at West Falls Church (7393 Route 29) is one of two Virginia cafes that “are unprofitable and provide no benefit,” the coffee chain — seeking to reject the cafe’s lease — alleged in federal court.
Compass Coffee is hoping to reject the leases on 10 cafes in all, which the brand believes will place them in a better position to pay off its creditors.
“Rejecting this burdensome lease, as well as the leases for the unprofitable locations identified in the lease list, will preserve the value of the [Compass Coffee]’s estate,” counsel for the coffee chain wrote.
According to the Chapter 11 bankruptcy filing, the coffee brand has liabilities estimated to be between $10 million and $50 million, including debts of nearly $2 million in back rent and landlord payments, more than $700,000 for coffee beans and more than $160,000 for oat milk.
Compass Coffee is also currently listed as a defendant in multiple civil lawsuits brought forth by landlords, vendors and even a co-founder, who alleges company leaders defrauded “business partners and others to unlawfully enrich themselves.”
Founded in 2014, the chain quickly grew into a popular, local coffeeshop alternative to international chains like Starbucks and Dunkin’, establishing 25 different locations.
The company made its Fairfax-area debut in 2022 with a cafe in Fairfax City’s Point50 shopping center. The West Falls Church one followed in 2024, becoming the business’ second to feature a drive-thru.
Compass Coffee is also seeking to terminate its lease for a location at 4300 Wilson Blvd in Ballston, along with some of its D.C. and Maryland locations, according to court filings. No timeline has been publicly announced for shuttering of the targeted locations, however.
A media representative for the coffee chain did not respond to a request for comment.
