EXECUTIVE SUMMARY

 

For over 28 years this Hawaii Commercial Laundry has established itself as the preferred high service, high quality supplier in their market. They both rent clean items to their customers and launder items owned by their customers.  They focus on the retail, health care, restaurant, bar and service station markets and they rent/launder a variety of napkins, tablecloths, kitchen towels, aprons, cook uniforms, mechanic uniforms, pharmacy frocks and washable floor mats, etc.  They are conveniently located close to customers which allows them to provide fast dependable service.

 

They wash, dry, fold and iron these items and deliver to customers by their own trucks five days per week.  They have conducted extraordinarily little sales and marketing efforts over the years and their excellent historic growth is based on positive word-of-mouth referrals from customers about their high delivery service and product quality.  During the Covid-19 pandemic they have been an “essential” business and therefore did not have to shut down.  There is little customer concentration.

 

The business is being offered on a fully turnkey basis with all operating assets including washers, dryers, ironers, and delivery vehicles, etc.  They have limited direct local competition; believe they have a high market share, and the market offers growth opportunities (after Covid-19). 

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COMPANY

• Listing ID:Com Laundry

• Location: Hawaii (Island Confidential)

• Type of Entity: LLC

• Year Established: 1991

• Industry: Commercial Laundry

 

FINANCIAL SUMMARY

    2019

• Revenue: $765,849

• SDE: $47,297

 

OFFERING SUMMARY

• Asking Price: $499,000

• Inventory included in the Price: Zero

• Tangible Assets (F,F&E): $221,857

• Non-Compete: 5 years

• Training: 1 week

• Sale Reason: Focus on other Hawaii businesses

 

LOCATION DETAILS

• Status: Leased

• Monthly Rent: $4,335.83 per month including CAM & HI GET; ($52,030 per year; $1.51 per sq. ft./month)

• Sq. Ft.: Approx. 2,880 square feet

• Lease Expiration Date: July 31, 2023

• Other: The site is centrally located to the area served; the industrial area they are in is one of the only places in the surrounding area where sewer lines are available and permitting is allowed.

EMPLOYEES

• 12-15 during normal times, during Covid-19: 6 (varies)

COMPETITION (Pros and Cons of Business)

• Limited direct competition.

 

EXPANSION OPPORTUNITIES

• The two targets for growth are: increased penetration of the current geographic market and broaden their geographic service area.

• Begin a sales and marketing effort.

• Expand service offering to include pressing, dry-cleaning and other laundry services

• They have sufficient capacity to expand sales without the need to invest in additional equipment.

 

TRADING HOURS

• Pre-Covid-19 hours: Monday through Friday, 7 am to 3:30 pm.

• Covid-19 hours: Operating on reduced days and hours, subject to modification based on demand. 

• The facility is not open to the public.

 

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