Busy Dry Cleaner Business for Sale in Metairie, La (1 of 2)

Undisclosed Address, Metairie, LA 70002
Business Opportunity for Sale
Catylist Listing ID: 30785898
Property Subtypes: Personal
Building Size (RSF): See Agent
Sale Price: $700,000
In Opportunity Zone? Yes
Name of Establishment: Royal Cleaners
Year Business Established: 1970
Gross Revenue: $700,000 (Annual)
Cash Flow: $200,000 (Annual)
Cash Flow Type: Sellers Discretionary Earnings
Last Updated: 5/18/2022

Overview / Comments

Principle Business Advisors presents this established, 50-year-old dry cleaning business for sale in Metairie, Louisiana. This is one of two locations for sale. This business is in an excellent, centralized location surrounded by high-traffic streets. Hydrocarbons have been used at the location since the mid-1990s and the property received a clean environmental inspection in 2001. There is a complete list of loyal clientele that will be included in the sale. The business performs a variety of services for its retail clients and benefits from several wholesale relationships due to its on-site plant.

The numbers listed are 2021 numbers which the current owner expects to improve this year due to the sale and closure of a large local competitor.

There is a Matterport 3D scan available to disclosed buyers.

Come meet the owner, see this beautiful, modern facility and make an offer!

For more information, contact Joel Duran CM&AA, CEPA, CMSBB at (504)
321-0196.

Additional Details

Industry Segment: Dry-Cleaning and Laundry
Reason for Selling: Relocating
Value of Inventory Included ($): $3,000
Value of Furniture, Fixtures, and Equipment ($): $150,000
Real Estate Status: Leased
Value of Real Estate Included ($): $0
Real Estate Lease Description: The current owner will lease the real estate to a qualified buyer for $6500 per month.
Employee/Labor Description: The business has 7 employees and a payroll of $16,000.
Mgmt/Training Support Description: The seller will train a buyer for two weeks and then be available as necessary by phone.
Competition/Market Description: The Great Recession of 2008 and the Covid-19 attack of 2020 have not been good for the service industries—including dry cleaning, as well as the commercial real estate industry—but to office worker vacancy rates and the difficulty of shopping centers to collect rent from struggling shop owners. It is expected that by the end of 2021, we will see more than 33 percent of the dry cleaning storefronts that were functioning in 2007 to be closed, and replaced by the new larger and more efficient type of dry cleaning operations. This is similar to what happened in the 1970s when the oil embargo caused a recession and the consumer switched to polyester clothing, resulting in the loss of 1/3 or more of the dry cleaning storefronts to close. Upon the end of the 70s, the recession ended and the consumers went back to natural fabrics, resulting in the revival of the remaining dry cleaners, who became the dry cleaning millionaires of the 1980s! Change always has its upsides and downsides for different groups!
Growth/Expansion Opportunities: This billion-dollar industry is going through a major paradigm shift from small mom-and-pop operators to sophisticated business people with centralized automated plants, computerized inventory, and many changes that were not known of 10 or 20 years ago. We work with the new breed of dry cleaning entrepreneurs to assist with their growth and operations. Commenting on all of the industry is difficult, as the quality levels, price points, the economy of scale, and markets served are so different! Modern dry cleaning operations are growing into light industrial production and distribution operations. The dry cleaning industry was hit hard by Covid in 2020. Many small dry cleaners have closed, but the larger ones seem to be coming back. As of March 2021, most are averaging 50 percent of what they did for the same months in 2019. This business does not have that problem!
Seller Financing Description: The seller will consider some owner financing for the right buyer.

Contact

Photograph of Listing Agent

Joel Duran

Principle Business Advisors Metairie, LA 70055
LACDB Member
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