Petition for Fair Compensation to Philz Coffee’s Common Shareholders

A $145 million sale. A company built by its people. And zero for the employees who believed in it.

A Los Angeles-based private equity firm, Freeman Spogli & Co., is in the process of acquiring Philz Coffee for $145 million. The deal is expected to close on August 8, 2025. Under the current terms, common stockholders—including many Philz employees who purchased shares—will receive nothing. Their shares are scheduled to be canceled and rendered worthless, despite years of service and financial investment in the brand.

This outcome has been described by many as “being screwed out of their stock.” These are not distant investors—they’re baristas, managers, and early team members who believed in Philz’s mission, poured their hearts into the company, and invested their savings. They are now being left behind while preferred stockholders and lenders are made whole and rewarded.

Philz Coffee is not going bankrupt. It is being sold as a viable, beloved business. And yet, the people who built it—some of whom paid thousands for their shares—are being erased.

Freeman Spogli & Co. – A Major Consumer-Facing Firm

Freeman Spogli & Co. is no stranger to brands you know. The firm currently owns or is invested in:

Brooklinen (home goods)

Cafe Rio (fast-casual Mexican)

City Barbeque (barbecue restaurants)

VIO Med Spa

WhiteWater Express Car Wash

Batteries Plus

NearU (HVAC services)

Infinity Home Services (roofing)

CRH Healthcare

EverVet Partners

Baseline Fitness (Planet Fitness operator)

U.S. Med-Equip

Easy Ice

Kamps Pallets

Five Star Breaktime Solutions

Propelled Brands (Camp  Bow Wow, FASTSIGNS, NerdsToGo, MY SALON Suite)

Galco Industrial Electronics

Totes»Isotoner

Regent Holding Co.

MicroStar Logistics

Freeman Spogli has built its portfolio by investing in trusted, community-based brands. It should understand better than most that loyalty, integrity, and fairness matter.

What We’re Asking

We, the undersigned customers, employees, investors, and community members, call on Freeman Spogli & Co. to:

1. Provide fair compensation to Philz Coffee’s common shareholders—especially the employees who bought in. Even if payouts to preferred shareholders and debt holders come first, Freeman Spogli can choose to carve out a portion of the deal to make common shareholders whole.

2. Ensure all creditors and vendors are paid in full. Small businesses and suppliers shouldn’t lose out as part of a private equity transaction. Any unpaid bills or liabilities should be resolved as part of this acquisition.

These are modest, fair requests in the context of a $145 million deal.

Why This Matters

Philz Coffee was built by its people—from its founders to the early baristas who made each cup with care. Many believed in the brand so strongly they bought shares out of pocket, trusting that one day they’d benefit from their work.

To cancel those shares now—while others walk away with millions—is deeply unfair. It sets a terrible precedent for startup employees and working-class shareholders everywhere.

If There Is No Action

We hope Freeman Spogli does the right thing.

But if no corrective action is taken, and the acquisition proceeds with common shareholders receiving nothing, we will take further steps.

We will:

Publicly call out Freeman Spogli for exploiting working-class shareholders.

Launch a coordinated boycott of Freeman Spogli portfolio companies—including Brooklinen, Cafe Rio, City Barbeque, Batteries Plus, WhiteWater Express, and others.

Contact journalists, regulators, and stakeholders to raise awareness of this inequity.

This isn’t just about Philz. This is about every startup employee who’s ever been told they’re part of something, only to be cut out when it counts.

Our Message to Freeman Spogli

You have the opportunity to lead by example.

Step in. Allocate compensation for Philz’s common shareholders. Protect vendors. Preserve your firm’s reputation with customers and employees across your entire portfolio.

You don’t just invest in brands—you invest in communities. This is your chance to show they can trust you.

Sincerely,
The Philz Coffee Community and Supporters

Date: August 2025
Target: Freeman Spogli & Co.
Goal: Fair compensation for common shareholders and payment of all owed obligations.