COVID-19’s economic impact has been severe for small-to-medium sized businesses, forcing many to seek bankruptcy restructurings or outright closing down altogether. According to Harvard, an estimated 110,000 small businesses across the United States permanently shut down between March and May 2020 alone. The lingering pandemic will only continue to exacerbate an already difficult situation for some businesses.
The pandemic’s “once in a lifetime” impact has brought down businesses that were, in some cases, profitable and desirable businesses just several months ago. However, with COVID-19 shutdowns and stay-home orders ravaging the economy, many businesses saw operations come to a near-complete halt.
This has powered distressed investing interest and demand to new heights. Many investors anticipate once-successful businesses in impacted industries to rebound as post-pandemic new normal emerges.
Sortis Holdings, Inc. (OTC Pink: SOHI) is one such alternative investment company that is already making waves in the distressed investment space.
Sortis Holdings Establishes Rescue Fund in May
The team at Sortis continues to reach new, meaningful milestones in 2020. Despite challenging overall economic conditions, Sortis powered ahead with the launch of its latest investment fund, the Sortis Rescue Fund (SRF), in May 2020.
The SRF focuses on a broad range of distressed investment opportunities and has already made two high-profile investments since its inception, which only further highlights the potential for the fund as it matures.
Sortis’ acquisition of Rudy’s Barbershop and Sustainable Restaurant Group (SRG) sends a big message to the alternative investment industry that they are a very formidable deal-maker. Having beat out other investment firms during the bankruptcy cases for Rudy’s and SRG, Sortis continues to build on its successful deal track record.
Latest SRF Deal: Bamboo Sushi
In late July 2020, Sortis announced the SRF’s acquisition of Sustainable Restaurant Group (SRG), the owner of Bamboo Sushi. SRG was originally founded in 2008 with the idea of developing a “mission-focused restaurant concept committed to environmental and social change,” according to the company.
In 2018, SRG received a strategic investment from Bain Capital Double Impact and the Kitchen Fund. The backing helped support SRG’s expansion plans into new markets. Currently, Bamboo Sushi has nine locations across Portland, Seattle, Bay Area, and Denver.
Sortis notes that it intends to fully reopen all Bamboo Sushi locations once able in compliance with all state and local government orders. Furthermore, the Sortis team announced its commitment to rehiring furloughed workers, as operations resume to full capacity. Customers can utilize pickup and delivery availability at the Northwest, Northeast, and Lake Oswego Bamboo Sushi locations across the Portland area.
“We are thrilled to bring our team’s experience, ideas, and energy to the Bamboo Sushi brand,” said Paul Brenneke, founder and executive chairman at Sortis Holdings. “SRG was built on a thoughtful approach to dining, food sourcing, and growth. It had poor timing for its rapid growth opening four restaurants in the months before the pandemic’s once in a lifetime impact, but it’s the kind of company that we believe will survive and thrive in a post-pandemic world.”
Overall, Sortis Holdings is continuing to position itself for the long-term, with the understanding that there are opportunities out there today that can grow and pay off once the world moves into a new normal. Quality businesses have been brought to their knees by the pandemic.
Sortis’ rescue fund seeks to be a life-line to these quality companies that do have the capacity to re-emerge once life gets back into a rhythm again. The management team has shown it has the deal-making skills necessary to capitalize on opportunity while trying to work towards a “win-win” outcome for the community. This is what will continue to propel success at Sortis Holdings.
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