Home›Real Estate›Industry›Compass Coffee seeks dismissal of Chapter 11 case due…

Compass Coffee seeks dismissal of Chapter 11 case due to lack of funds

The company said it cannot formulate and prosecute a Chapter 11 plan and has no funds to distribute to unsecured creditors, with a hearing set for Aug. 19.

Reported · Written up by our desk · Industry

Compass Coffee LLC has asked a federal court to dismiss its Chapter 11 bankruptcy case, arguing it is nearly out of cash and lacks the funds to confirm a restructuring plan. In a court filing, the company said it cannot formulate and prosecute a plan at this stage and that even if a plan were confirmed, there would be no money to distribute to unsecured claimants.

Compass also said a dismissal would allow it to pay remaining administrative expenses and professional fees with its remaining funds. A hearing on the request is scheduled for Aug. 19, according to the filing.

The company filed for Chapter 11 in January after several years of financial strain that it linked to lower office usage and reduced federal employees impacting customer traffic. Compass said it has no ongoing business operations after selling substantially all of its assets to U.K.-based coffeehouse chain Caffè Nero and closing on a $4.8 million sale in March.

Compass said it paid secured claims in full and covered the costs to finalize the sale. It also noted it is still facing separate litigation, including claims by co-founder Harrison Suarez against the company and co-founder Michael Haft, according to Bisnow, which reported on the court filing.

Latest closeCoffee $324.25 ▼0.8%

More like this

Sources