We investigate possible nontrivial phases of a two-subband quantum wire. It is found that inter- and intra-subband interactions may drive the electron system of the wire into a gapped state. If the nominal electron densities in the two subbands are sufficiently close to each other, then the leading instability is the inter-subband charge-density wave (CDW). For larger difference in the densities, the interaction in the inter-subband Cooper channel may lead to a superconducting instability. The total charge density mode, responsible for the conductance of an ideal wire, always remains gapless, which enforces the two-terminal conductance to be at the universal value of 2e 2/hper occupied subband. On the contrary, the tunneling density of states (DOS) in the bulk of the wire acquires a hard gap, above which the DOS has a non-universal singularity. This singularity is weaker than the square-root divergency characteristic for non-interacting quasiparticles near a gap edge due to the “dressing” of massive modes by a gapless total charge density mode. The DOS for tunneling into the end of a wire in a CDW-gapped state, however, preserves the power-law behavior due to the frustration the edge introduces into the CDW order. This work is related to the vast literature on coupled 1D systems, and most of all, on two-leg Hubbard ladders. Whenever possible, we give derivations of the important results by other authors, adopted for the context of our study.