Rudy’s Barbershop filed for Chapter 11 Bankruptcy on April 2, due to the impact of COVID-19 on the business. The original founders of Rudy’s, Wade Weigel and David Petersen, bought the company out of bankruptcy.
According to The Seattle Times, Rudy’s Barbershop executives, Petersen and Weigel, along with Tom Bailiff, the operation’s first accountant, teamed with Portland investment firm Sortis Holdings to pay about $2.5 million for the company. Court documents explained that what helped to solidify the deal was the past owner’s willingness to take on all 25 leases for the Rudy’s locations.
The previous ownership groups with majority shares of the company were private equity firms including Northwood Ventures LLC and an Ares Capital Corporation joint venture. 54% of the company was sold to these firms in 2014 when owners, Weigel and Petersen, were trying to retire from the business.
According to co-founder, Wade Weigel, “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.”
Rudy’s has 25 locations, including one in Downtown Bellevue, located on Main Street. They were originally located in the iconic old Kit Build Gas Station next to the old IHOP. According to co-founder David Petersen, they would love to find another great space like this on the Eastside.
The barbershop first opened in Downtown Bellevue at the old gas station in 2002. The Bellevue location re-opened its doors at 10713 Main Street in 2014.
The company is hoping to expand their shops to Woodinville and Kirkland in the future.
Due to COVID-19, barbershops are not able to open until Phase 2 begins.