Laundry and dry cleaning businesses are a stalwart of the high street, but it has to be asked, but for how much longer? As businesses are expected to pay their way again, meeting rent and business rate charges, in addition to tax bills, the future looks bleak for some.

Here at Company Debt, we have significant experience in both closing and restructuring laundry and dry cleaning providers. Get in touch for a free, no-obligation discussion about your situation with one of our licensed insolvency practitioners.

Laundry and Dry Cleaning Pressure Points

More work from home – less need for smart clothes
Fewer stay in hotels – less need for laundry provision
Rent costs may prove final straw

What are the Reasons for Laundry and Dry Cleaning Insolvency?

For various reasons, laundry services are being used less. Homeworking is a big factor, few need to have their clothes professionally pressed and cleaned if they only see people via Zoom.

It’s said that a hotel with 100 bedrooms will use around 750 linen items daily – this goes to show how devastating the pandemic has been for a laundry supplier.

The sector is also dealing with disruptors – there has been a large rise of app-based services, where laundry and dry cleaning is collected and delivered. Those businesses that do not offer the facility and fail to build strong social media connections,  will start to look outdated. There may also be demand for more environmentally friendly services and businesses may well need to refresh and modernise their approach. Instead of waiting for walk-in customers, new markets such as students or ‘staycationing’ holidaymakers may be sources of business.

There could also be a staffing issue. Many laundry and dry cleaners will have furloughed people, now they need to look at whether the jobs remain ad if there needs to be a switch to more drivers, for example. Some employees may also have returned to the EU and there could be problems in finding people who want to work in this sector, as well as the impact of the minimum wage.

Help for your insolvent laundry and dry cleaning business

If your laundry and dry cleaning business is experiencing difficulties, you should not delay seeking advice. Business owners need to address problems and if they put this off, then their options become more limited.

Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery, or liquidation.

Knowledge – Insight – Solutions

We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.

Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.

We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.

As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.

Book My Consultation

If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.

  • Your free consultation will be led by one of our experienced London insolvency practitioners
  • You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
  • The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
  • We specialise in helping limited comany directors needing immediate professional debt advice

 

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