U.K.'s Caffè Nero wins bid to acquire Compass Coffee

The multinational coffee company will continue to operate Compass' 17 D.C.-area cafes.

Published on Feb. 27, 2026

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Compass Coffee, the beleaguered D.C.-based coffee chain, has been acquired by London-based Caffè Nero after the U.K. company submitted the winning bid to purchase most of Compass' assets. Compass, founded over a decade ago by two former U.S. Marines, filed for Chapter 11 bankruptcy last month.

Why it matters

The acquisition of Compass Coffee by the larger Caffè Nero brand signals the challenges facing independent coffee shops in the D.C. area, where rising rents and increased competition from national chains have made it difficult for local businesses to thrive. However, Caffè Nero's plans to continue operating the 17 existing Compass locations suggests an effort to preserve the local brand's presence.

The details

Caffè Nero, a multinational coffee shop chain based in the United Kingdom, submitted the winning bid on Thursday to purchase the majority of Compass Coffee's assets after the D.C.-based company filed for Chapter 11 bankruptcy last month. Compass was founded over a decade ago by two former U.S. Marines and had grown to 17 locations in the D.C. metro area before facing financial difficulties.

  • Compass Coffee filed for Chapter 11 bankruptcy last month.
  • Caffè Nero submitted the winning bid to acquire Compass on Thursday, February 19, 2026.

The players

Caffè Nero

A multinational coffee shop chain based in the United Kingdom that has acquired the majority of Compass Coffee's assets.

Compass Coffee

A D.C.-based coffee chain founded over a decade ago by two former U.S. Marines that filed for Chapter 11 bankruptcy last month.

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What’s next

Caffè Nero plans to continue operating the 17 existing Compass Coffee locations in the D.C. area under the Compass brand.

The takeaway

The acquisition of Compass Coffee by the larger Caffè Nero brand highlights the challenges facing independent coffee shops in the D.C. area, where rising costs and increased competition from national chains have made it difficult for local businesses to thrive. However, Caffè Nero's plans to maintain the Compass brand and locations suggest an effort to preserve the local coffee shop's presence in the community.