Coffee company files for Chapter 7 bankruptcy, faces liquidation | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

While the market for coffee in various forms shows no sign of slowing down, a number of cafes serving it have run into financial problems over the last year.

After filing for Chapter 11 bankruptcy at the start of 2026, Washington, D.C.-based roaster and coffeehouse chain Compass Coffee closed 10 of its locations as 17 others stay open but remain at risk. British coffee giant Nerò Coffee later ended up winning a stalking horse bid for the brand and assets for $2.9 million.

A few months earlier in November 2025, smaller coffee cafe chain The Blend Coffee & Cocktails also filed for Chapter 11 protection after opening eight locations within four years of launching led to high costs that the company struggled to cover with brought-in revenue.

Instant Coffee Supplies enters voluntary liquidation, begins process of shutting down

The latest coffee company to enter voluntary liquidation, which is the closest United Kingdom equivalent to Chapter 7 bankruptcy, is supplier Instant Coffee Supplies Limited. Registered in both Wales and the Surrey county bordering greater London, the company supplying ground coffee to various cafes and larger chains was established in 2011.

As first reported by local news outlet, the company submitted a formal resolution to shut down operations and liquidate.

“Notice is hereby given that the following resolutions were passed on 24 March 2026, as a Special Resolution and an Ordinary Resolution respectively: That the Company be wound up voluntarily,” the Resolutions for Winding-up notice filed with British courts reads.

Director Trevor Geoffrey Blashfield, 81, also confirmed that the company will be shutting down for good. At the time of the filing, Instant Coffee Supplies reported £1.08 million (roughly $1.44 million USD) in assets and no remaining employees working for it.

The owner’s retirement and no successor available to take over the company was also listed as one of the reasons behind the voluntary liquidation.

In 2025, its recorded capital was £1.4 million. Insolvency firm Cullen & Co UK was appointed as the specialized liquidator overseeing the case.

Instant Coffee Supplies furnished ground coffee to shops and cafes in the London area.

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“A lot of coffee lost”: Why smaller coffee chains are struggling

While the company operated largely behind the scenes supplying coffee and was not well-known by customers, news of the liquidation immediately caused an outcry among the public who see it as a sign of smaller chains and distributors struggling to stay afloat in the current economy.

“That’s a lot of coffee lost,” one commenter wrote under the social media post announcing the liquidation.

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Despite the coffee and coffee shop markets continuing to see strong demand in both the U.S. and the UK, rising costs of energy and coffee itself have led to a tough market in which smaller chains have to continuously raise prices and risk alienating customers. Large chains, in turn, can weather economic ebbs but create a market in which customers are thirsty for more personalized service and independent options.

“So have we reached peak coffee, or just peak Costa?” one British analyst wrote in reference to the largest coffeehouse chain in the UK.