The economic upheaval created by the COVID-19 crisis will put one of Capitol Hill’s signature companies back in the hands of the group of friends who created it on E Pine nearly 30 years ago.
According to federal court filings in a $3.5 million deal that closed Friday, Rudy’s Reloaded, a company involving founders Wade Weigel and David Petersen has successfully won a bid to purchase the Rudy’s Barbershop chain out of bankruptcy.
“After several rounds of bidding between the Stalking Horse and Rudy’s Reloaded during the Auction, the Debtors determined, in consultation with counsel to the Committee, that: (i) Rudy’s Reloaded was the Successful Bidder and its final bid was the Successful Bid; and (ii) that the Stalking Horse was the Back-Up Bidder and its final bid was the Back-Up Bid under the Bidding Procedures Order,” an analysis used in determining the winning bid reads. Continue reading →
In a bid to save the company and the jobs of its 600 employees, Capitol Hill-born Rudy’s Barbershops has filed for bankruptcy and is seeking permission for a quick sale to raise cash it needs to continue after its business was wiped away by the COVID-19 crisis.
“Because the company was forced to shutter all of its operations, the company’s main source of revenue, the services it provides to its customers, has completely and unexpectedly evaporated overnight,” CEO Kathleen Trent writes in the Chapter 11 bankruptcy documents filed in Delaware last week.
Born on E Pine and an exporter of Capitol Hill style for nearly 30 years, Rudy’s is now in the fight of its financial life and is asking the court for a quick “Stalking Horse” sale to a private equity firm offering a $1.525 million lifeline and a to be determined bid for the company. Continue reading →