Sortis Holdings, now SoHi Brands, a private equity firm notorious for buying businesses on the brink of bankruptcy, is wrestling with financial issues. Renowned companies such as Sizzle Pie, Rudy’s Barbershop and Bamboo Sushi, a part of its portfolio, are adversely hit by this development. With unpaid bills, rising eviction notifications and lawsuits, the future of Sortis is ambiguous.
Its current economic struggle is creating a wave of apprehension among Portland businesses and their employees who rely on the continued services of these companies. Creditors, local businesses, and landlords are bracing for the worst scenarios. The potential downfall of SoHi Brands could trigger ripple effects across Portland’s economic landscape and community.
Thor Drake, co-founder of See See Motor Coffee Co., paid overdue lease expenses from his pocket due to a distressing call he received on Christmas Eve in 2023. This predicament left him financially strained. Drake’s patience was thoroughly tested as he strived to negotiate this complicated situation while not letting his business sink.
SoHi Brands’ financial troubles impacting businesses
Nonetheless, Drake’s hope remained intact that the matter will be eventually sorted out, and operations of See See Motor Coffee Co. return to normal.
Drake left his role as Creative Director five months after the discussed incident. His company, The Coffee Co., was bought by Sortis Holdings in 2020, but they failed to keep the business floating, leading to the loss of the Sandy Boulevard location due to rent defaults. This sparked concerns about the future of the company under new management, and stakeholders are now questioning the ability of the new management to guide the company in the right direction.
SoHi Brands, based in Oregon, employs around 1,200 people while managing major brands such as Ava Gene’s and Water Avenue Coffee. However, there is speculation about employees’ career prospects with the alleged financial turbulence the company is facing.
Originally a private equity fund with a heavy emphasis on real estate investments, Sortis pivoted its scope to the hospitality sector afflicted by the Covid-19 pandemic. The new approach began by acquiring the pandemic-hit Rudy’s Barbershop during bankruptcy proceedings. This marked the beginning of Sortis’ interest in assets with potential for development, manifesting their adaptive management strategy.
Most of the acquisitions were conducted through stock swap deals, allowing the original founders to remain employed at Sortis’ main office, earn a regular salary and hold shares traded on the unlisted market. Regardless, there is looming uncertainty about the future of these beloved brands under the troubled SoHi Brands.
