Red Bay Coffee Roasters is known throughout the Bay Area for its social advocacy and support of the Black and Brown community.
Red Bay Coffee Roasters has officially filed for Chapter 11 Bankruptcy. The Black-owned coffee chain in Oakland will begin this process as multiple lawsuits against the company wage on.
San Francisco Business Times reported that Red Bay filed in late August. The notable franchise, which boast five stores across the Bay Area, stated that Covid-19’s impact and the ongoing lawsuits played the biggest roles. Specifically, the paperwork noted “spiraling costs and related uncertainties” surrounding the lawsuits as a push toward Chapter 11 protections.
Through its expansion, Konte appointed the space as unapologetically welcoming to Black and Brown people, hosting panels and workshops to uplift its local community. Red Bay has also featured exclusive coffee blends that shed light on social causes, one most recently dedicated to the conflict in Democratic Republic of Congo conflict as well as sickle cell disease awareness. However, lawsuits accusing the employees of sexual harassment and wage theft have stunted the company.
A former landlord also filed another lawsuit against Red Bay. The filing stated the franchise breached a contract surrounding one of its now-defunct locations in Southern California. To add to their legal woes, the filing also claimed Equal Employment Opportunity Commissions (EEOC) launched an investigation into their business practices based on claims made by a former employee. THe EEOC has yet to confirm the investigation given federal policies.
As the Oakland-based chain enters bankruptcy, the future of its five operating storefronts remain in limbo.
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Source: Black Enterprise
