Tag Archives: bankruptcy

As Voodoo arrives on Capitol Hill, Seattle’s Mighty-O Donuts faces bankruptcy — UPDATE

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(Image: Mighty-O Donuts)

As a doughnut invader from the south prepares its sweet assault on the city with a Capitol Hill beachhead, a veteran of Seattle’s fried dough scene is financially struggling.

Federal court documents show Mighty-O Donuts filed for Chapter 11 bankruptcy protection in July in a case where the filings continue over the more than $1 million in liabilities the small Seattle company carries.

CHS has asked the company for more information about its future and its employees after the filing that came as Might-O founder Ryan Kellner saw profits at his four cafes and production facility dip to near zero this summer.

In its filing, the company blames the pandemic and national economic issues for its troubles saying “a combination of factors, including the adverse effects of the pandemic, increased costs due to inflation, decreased sales, and high fixed lease costs” led to the bankruptcy.

“Mighty-O experienced modest growth for many years until the COVID-19 pandemic in
2020,” one document reads. “The pandemic severely impacted Mighty-O’s ability to operate a financially sound business. The company experienced a significant drop in customer traffic and a decrease in employee availability, preventing it from operating at full capacity. Additionally, Mighty-O faced major disruptions in supply chains, vendor services, and rising costs due to inflation.” Continue reading →

Founders have deal to rescue Rudy’s Barbershop from bankruptcy

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Inside the E Pine Rudy's

Rudy’s in busier days

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 fight to survive pandemic crisis and save 600 jobs, Capitol Hill-headquartered Rudy’s Barbershops declares bankruptcy

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Rudy’s in sunnier times

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 →