The E Pine original (Image: Rudy’s Barbershop)
The company now behind Capitol HIll-born beauty brand Rudy’s Barbershop and a handful of PNW standards collected by the private equity firm during the pandemic has reached a deal hoped to help the company from being forced into bankruptcy.
Sortis Brands reached the agreement and averted a key hearing last week with a group of creditors engaged in a federal court battle that could have forced the company into bankruptcy over a disputed $8 million in debt.
Details of the arrangement still need to be approved by Oregon’s U.S. Bankruptcy Court but The Oregonian reports the proposed settlement has tentatively staved off liquidation for the company.
CHS reported here in 2020 on the pandemic deal returning the Capitol Hill founders of Rudy’s to the fold and rescuing the chain out of bankruptcy. It turns out, Sortis was also in on the transaction.
What happened next including financial issues and reports of unpaid bills is the stuff of private equity horror stories and has left questions around the Rudy’s deal and others.
In Seattle and on Capitol Hill, Rudy’s locations have remained open and CHS has not found ongoing public record of lease issues involving Sortis. The company settled a case involving one of its restaurants at University Village out of court.
Meanwhile, the Capitol Hill 15th Ave E Rudy’s location has moved up the street to a new barbershop inside the newly completed Capitol Hilltop mixed-use development. Rudy’s also operates a 12th Ave shop and its original E Pine location.
The first Rudy’s was opened in January, 1993 on E Pine by friends Alex Calderwood, Wade Weigel, and David Petersen. You can trace the lineage of many veins of Capitol Hill cool through the partners. Weigel, for example, also was part of starting the Cha Cha Lounge. The trio also made a fortune with their Ace Hotels.
The name Rudy’s is said to have been inspired by a character from the Fat Albert and the Cosby Kids cartoons.
Sortis holdings have included Rudy’s, Ace, Sizzle Pie, Bamboo Sushi, Ava Gene’s, Tusk, and Water Avenue Coffee.
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