PE-Backed Barbershop Chain Files Bankruptcy on Virus Shutdown

Rudy’s Barbershop Holdings files for Chapter 11 bankruptcy in Delaware after it was forced to shutter its locations amid the spreading coronavirus pandemic, court papers show.

• Rudy’s, which has 25 barbershops across the U.S., was already facing a cash crunch and losing money when it had to close all of its locations, Chief Executive Office Kathleen Trent said in a court declaration
  • Chain is owned by private equity firms including Northwood Ventures (36.81%) and an Ares Capital Corp. joint venture (17.28%)
• Co. plans to sell itself to Tacit Capital LLC in bankruptcy, Trent said
• The chain, which was forced to furlough most of its 600 employees, generated revenue of $26.6m last year and a net loss of $2.142m, Trent said
• Owes $2.6m in secured notes to Northwood and Partnership Capital Growth
• The case is Rudy’s Barbershop Holdings LLC, 20-10746-LSS, U.S. Bankruptcy Court for the District of Delaware (Delaware)

To contact the reporter on this story:
Jeremy Hill in New York at jhill273@bloomberg.net

To contact the editors responsible for this story:
Rick Green at rgreen18@bloomberg.net

Boris Korby

© 2020 Bloomberg L.P. All rights reserved. Used with permission.