Black-owned Northern California coffee chain files for bankruptcy protection after harassment claims

The bankruptcy filing reveals that Red Bay Coffee’s assets total just over $251,000, while its liabilities are estimated at $3.3 million.Photo byDemi DeHerreraonUnsplash

Red Bay Coffee, a prominent name in the Bay Area’s coffee scene, has filed for Chapter 11 bankruptcy protection, according to a report by the San Francisco Business Times. The company, led by CEO Keba Konte, sought bankruptcy relief in late August, citing financial difficulties exacerbated by the COVID-19 pandemic and ongoing legal challenges.

The bankruptcy filing reveals that Red Bay Coffee’s assets total just over $251,000, while its liabilities are estimated at $3.3 million. The company reported a significant net loss of over $850,000 from January to July 2024. The impact of two ongoing lawsuits has compounded these financial woes, adding to the company’s uncertainties.

Despite filing for bankruptcy, Red Bay Coffee will continue its operations under Konte as debtor-in-possession. However, the future of the company’s five cafes in Oakland, Berkeley, and San Francisco remains uncertain. The bankruptcy proceedings will determine the next steps for the business, including potential restructuring or closure of its locations.