The Red Bay Coffee and flagship cafe in Oakland, California. Photo by LocalWiki Contributors, shared via Creative Commons Attribution 4.0 license (CC-BY 4.0).
Oakland, California-based specialty coffee roaster and retailer Red Bay Coffee filed for Chapter 11 bankruptcy protection late last month, citing financial losses in the first half of 2024.
The coffee company led by entrepreneur and community organizer Keba Konte filed the petition in U.S. Bankruptcy Court in the Northern District of California on Aug. 29.
Konte told Daily Coffee News that the decision to file for bankruptcy was driven in large part by “spiraling COVID-19 pandemic debt and a down retail market here in the S.F. Bay Area.”
In paperwork supporting the bankruptcy petition, Red Bay Coffee Company noted net losses of just over $850,000 between January and July of this year, as well as total liabilities and equity of $3.53 million.
The company is seeking protections under subchapter 5 of Chapter 11, designed to provide a more streamlined and simplified process for small businesses.
Konte told DCN that Red Bay’s roasting and retail operations continuing through the bankruptcy proceedings.
“We are planning to push through these challenging times and keep bringing beautiful coffee to the people,” Konte said. “From the day we started in 2014, we have been on a mission and that mission is not complete. So, we will carry on fostering diversity, inclusion, and economic empowerment in the coffee industry. Our commitment here remains steadfast.”
In its Chapter 11 filing, Red Bay listed its total number of creditors to be 200-999, estimated assets of $100,001-500,000 and estimated liabilities of $1-10 million. A list of 20 creditors with the largest alleged unsecured claims includes financial lenders, legal firms and multiple green coffee and coffee equipment companies. Each of the 20 claims were listed as “disputed” by Red Bay Coffee.
Red Bay Coffee is the latest in a growing list of small U.S. coffee businesses to seek Chapter 11 protections in 2024. Those businesses include California-based green coffee production company Frinj Coffee, Colorado-based coffee roaster and retailer Ink! Coffee, Colorado-based Switchback Coffee Roasters and South Dakota-based Cottonwood Coffee.
In December 2023, green coffee trader Mercon Coffee Group filed for Chapter 11 bankruptcy. The Mercon Specialty business was subsequently acquired by StoneX.
Red Bay Coffee maintains six fixed retail locations in the Bay Area, including its flagship cafe on the ground floor of its Oakland headquarters, plus one mobile truck and an Oakland roastery.
Konte founded Red Bay Coffee in his Oakland home in 2014 before launching a Kickstarter to support the first cafe opening.
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Nick Brown
Nick Brown is the editor of Daily Coffee News by Roast Magazine.
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