Investment Fund Rescues Iconic Barbershop From Pandemic-Related Bankruptcy
The co-founders of Rudy’s Barbershop worked with Sortis executives to pay about $2.5 million for the barbershop and avoid the involvement of the distressed equity firms.
An alternative investment fund manager in Portland helped rescue a Seattle-area barbershop after it filed for bankruptcy in early April in connection with the coronavirus pandemic
The co-founders of Rudy’s Barbershop, which opened its first storefront in Seattle in 1993, reached out to Sortis Holdings when two equity firms focused on distressed assets were trying to snap up the barbershop in bankruptcy proceedings.
The co-founders worked with Sortis executives to pay about $2.5 million for the barbershop and avoid the involvement of the distressed equity firms.
Sortis’ William “Butch” Bannon and Executive Chairman Paul Brenneke said preserving businesses like Rudy’s will be important in the post-pandemic economy.
“What intrigued us most beyond the investment itself was the opportunity to help preserve an iconic Seattle business and the culture it represented,” Brenneke said. “It’s these small to mid-sized companies with unique visions and customer experiences that can thrive in a new era of retail post pandemic.”
As Rudy’s comes out of bankruptcy, it will focus on recapitalizing, creating a strategic plan to preserve its culture and, as restrictions related to coronavirus lift, providing a safe environment as an operating barbershop.
Rudy’s currently has 25 barbershops around the US, including 15 in the Puget Sound area.
Co-founder Wade Weigel said he’s looking forward to returning to the barbershop’s roots.
“When we founded Rudy’s Barbershop it was always about more than a haircut. It was a place for creative and social exploration. The spirit of Rudy’s culture, employees, customers, and community is all about having fun, celebrating who you are, and exploring who you could be. These are the parts of Rudy’s I am most excited to reconnect with,” Weigel said.
Sortis Holdings is a diversified investment firm with a focus on the Western United States. In addition to lending and investing in real estate, Sortis develops real estate through its affiliate companies.