PORTLAND, Ore., Jan. 11, 2021 /PRNewswire/ -- Sortis Holdings, Inc., (OTC: SOHI), finalized its investment in Blue Star Donuts as the plan sponsor out of Chapter 11 bankruptcy. Blue Star Founder and CEO Katie Poppe will continue as CEO of the restructured company.
Forced to close temporarily during COVID-19 nationwide shutdowns, Blue Star filed for bankruptcy protection in September 2020 with Sortis on board guiding the company through bankruptcy proceedings. The company's lawyer Mr. Oren Haker says, "Blue Star's bankruptcy filing included the use of a subchapter of chapter 11 focused on small businesses which came into effect in February 2020."
A hearing held November 23, 2020 in Portland approved the plan that brings Blue Star, a cherished Portland gourmet donut brand, back from a COVID-19 induced crisis. In addition to the investment, restructure terms prioritized retaining leadership and core stakeholders and working with the Blue Star team to provide support and resources where needed.
"I appreciate the trust and faith that Paul and Sortis have in me and my vision for Blue Star," said Poppe. "They listened to what was important to me, and put their money where their mouth is. Maintaining women-majority ownership and folding in some of our key staff stakeholders was essential to me, and I'm thrilled to be able to expand the ownership structure as we rebuild."
"Similar to the Sortis Rescue Fund's past few investments, it's great brands with a unique strategy like Blue Star that can thrive in a new era of retail post pandemic," says Paul Brenneke, Sortis' Executive Chairman. "We were especially intrigued by the potential for wholesale and e-Commerce channels in addition to the opportunity to help preserve a beloved Portland business and the culture it represents."
With a loyal customer base since 2012, Blue Star has 7 locations across the West Coast. The pandemic induced a pivot in the business plan to focus on wholesale to grocery that has led to their products being carried at more than 20 retail outlets so far. Blue Star has demonstrated its ability to adapt to e-Commerce as retail rapidly evolves.
About Sortis Rescue Fund, LLC
Sortis Rescue Fund, LLC is a Delaware limited liability company established by Sortis Fund Manager, LLC to capitalize on the dislocation and market stress in both the real estate and business markets caused by the COVID-19 global pandemic and subsequent economic fallout.
About Sortis Holdings, Inc.
Sortis Holdings (OTC: SOHI) is a leader in diversified alternative investment strategies focused on real estate, lending, distress situations and rescue opportunities. Sortis Funds include the Sortis Rescue Fund, the Sortis Income Fund, and the Sortis Opportunity Zone Fund.
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Sortis Holdings, its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Sortis Holdings' ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Sortis Holdings' and Sortis Rescue Fund's disclosure documents and filings.
This announcement does not constitute an offer, or any solicitation of any offer, to buy or subscribe for any securities. Any offer will be made only by means of an offer memorandum. This announcement is not for release, publication or distribution, in whole or in part, in or into, directly or indirectly, any jurisdiction other than the United States.
SOURCE Sortis Holdings