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UDRYQ U.S. Dry Cleaning Corporation Common Stock 9/22/2011 100 Plan of Bankruptcy Effective. All shares have been cancelled. Deletion Time: 10:02:41 **
Why the price declined 47% from 0.028 to 0.015 today? It seems UDRYQ
has already bottomed out at 0.01 with very strong support at 0.0111.
.015 may form another strong support! Any news from capital raising?
New 52-week low 0.01 was created last month. Sell at bid ASAP before
the CH11 hits 0.01 again! Why the stock rally to 0.028 from 0.0111?
Did the company find the enough capital to support the business yet?
Any chance for a buy-out or merger deal since it owns 78 stores?
Funds seem to be interested
http://www.mffais.com/udry.ob
we will be updating the ibox this week thank you for your patience
also... please, if you have any questions that we could add to a couple of surveys, please feel free to share them with us.
thanks to everyone in advance!
IMO - 10 Reasons to give UDRY a First, Second and Third look:
1. they have a business that will always be around
2. their technology will not become obsolete
3. they have $100m+ (revs)of acquisitions in the pipeline with financing (i believe) already in place
4. their acquisitions are #1 or #2 in their respective markets
5. they are completing atleast one acquisition per qtr
6. their acquisitions are accretive (did i spell that right)
7. they are atleast 2 years ahead (in research and positioning) of any new players that come into the consolidation arena
8. they are the first nationwide consolidator of drycleaning business'...there can only be one "first"
9. their ceo has extensive experience in building a nationwide network like this before (with video stores)
10. their name is Patriotic...US Drycleaning Corp.
Also
I don't pay for my membership so i can't private reply to anything and I have no idea how to go about adding moderators.
I'm not sure if you've noticed but, I've been watching this stock since last September. I'm just a little concerned with this section of the balance sheet
Sep 30,2007 Dec 31,2007 Mar 31,2008 Jun 30,2008
LIABILITIES & EQUITY
Accounts Payable 1.5 1.9 2.0 2.1
Accrued Expenses 1.4 1.3 1.4 1.2
Short-Term Borrowings 0.5 1.1 -- --
Current Portion of Long-Term Debt/Capital Lease
3.1 1.0 1.9 1.8
Current Portion of Capital Lease Obligations
0.2 0.2 0.2 0.2
TOTAL CURRENT LIABILITIES 6.5 5.2 5.3 5.1
Long-Term Debt
0.4 3.7 9.0 14.8
Capital Leases
0.3 0.2 0.2 0.2
TOTAL LIABILITIES 7.1 9.1 14.5 20.2
otcbb stocks are a breed unto themselves... they sometimes confuse and bewilder the mind when it comes to pps not equaling book value.
realize that the market has a mind of its own at times...lol correction - all the time. however imo the acquisitions that have been added to the udry portfolio are accretive in nature, and in fact, to their balance sheet...
note: $500k cash reserves 2nd qtr '07 and $4m in the bank 2nd qtr '08. in addition they have already reached a major threshold of over $20m in revenue and imo are on the direct path to reaching $100m revenue within the foreseeable future. robbie stated that they have already identified and are in active negotiations with possible acquisitions that already have those numbers in place. and i believe that he said that it would be at the rate of atleast one new purchase per quarter. imo those numbers are amazing.
also note that udry is THE FIRST Consolidator of nationwide drycleaners in america. there can only be one first and udry is it! it's a new concept, and perhaps a concept that investors will have to get comfortable with. however, americans are already comfortable with drycleaning to the tune of 9-10b a year gross as an industry...and imo will become very comfortable with udry in the future as well.
I think it was a very good interview. A lot of the questions asked were ones that i had and i really feel like this is a solid growth company. The company's stock however confuses me because it just keeps falling. I am unsure when i should add more to my position because all these acquisitions are not helping the stock price at all.
thanks for the welcome... imo udry is an excellent company with a solid plan for growth. i particularly like that they are the first nationwide drycleaning consolidators.
btw: what did you think about robbie's interview?
hey welcome to this board. I was concentrating on horse racing for the last month so i haven't been around much. I really feel like this company is a great investment at these prices. Except i don't think people will notice this until the end of the month or even later.
robbie lee completed an interview 8/29... very informative and gives the direction of where the company is headed... imo robbie is on track to accomplishing the goals that he has set for UDRY
http://www.ceonews.tv/interviews
One drycleaning chain grows, another shrinks
While an East Coast drycleaning chain is on the decline, a West Coast chain is on the rise.
As Zoots drycleaning was selling off or closing most of its branches, California-based U.S. Dry Cleaning Corp. continued its expansion, reaching the East Coast with the acquisition of some former Zoots properties and entering a merger agreement last month with Prestige Cleaners in Knoxville, TN.
The acquisition of the Portsmouth, VA-based Zoots operations for approximately $1.9 million puts U.S. Dry Cleaning on track to achieve its goal of a $100 million revenue run rate by the end of 2008, according to Robbie Lee, founder and CEO of USDC.
William Wall, formerly of Zoots and now general manager of USDC Portsmouth, Inc., said, “We are very enthusiastic about joining the USDC family and excited to be part of the effort to create the nation’s premier drycleaning chain.”
Meanwhile, Prestige Cleaners will continue to operate under its own name after merging with the publicly traded company. Its president and sole stockholder, Eddie Mannis, will become southeastern regional vice president of USDC. Administrative and training functions for USDC’s eastern region will be based in Knoxville.
USDC agreed to pay Mannis $3.5 million in cash and $2.8 million worth of USDC stock, according to an SEC filing.
“USDC first approached me about 14 months ago,” Mannis said. “I evaluated the situation for a considerable period of time. Now the timing is right for a merger, and it’s a great opportunity for Prestige and my employees.”
Prestige started in 1985 with one store and three employees and grew to nine locations and more than 160 employees and has annual revenue in excess of $7 million. The merger with USDC will provide increased operating efficiencies and access to capital, Mannis said. Within the next three years, he expects Prestige to add locations in the Knoxville area.
USDC’s Lee said the acquisition will increase operating cash flow and bring annualized revenue to approximately $30 million, three times that of last year.
“I have great respect for Eddie Mannis, who has built a very successful and market-leading business,” Lee said. “Mr. Mannis will be instrumental in bringing some of his best practices to our other operations.”
U.S. Dry Cleaning’s goal is to create a premier national chain in the drycleaning industry by rapidly acquiring profitable, market-leading operations. Each acquisition target is expected to be self-sufficient with field management remaining in place to ease the assimilation.
A year ago, the company completed a $6.1 million initial public offering and trades on the Over-the-Counter Bulletin Board under the symbol UDRY.
In addition to the recent additions, the company’s web site (www.usdrycleaning.com) lists locations in California and Hawaii.
Zoots diminished
Meanwhile, the Zoots name lives on in New England after Rick Simoneau and Trish O’Leary, two former Zoots managers, purchased the rights to the company and moved its headquarters to Brockton, MA, where the company already had a 50,000-sq.-ft. production plant.
Seven Massachusetts stores were closed, but all 350 local jobs were saved, including 200 in Brockton; 17 stores and 30 delivery routes in Massachusetts and Rhode Island were retained.
Zoots was started in 1998 by two former Staples Inc. executives and backed by Staples founder Tom Stemberg. At its peak there were more than 50 retail outlets on the East Coast and more than 800 employees.
After a planned recapitalization fell through and no buyer for the company could be found, the company began selling its assets piecemeal.
Todd Krasnow, founder of Zoots, told the Boston Business Journal that the sell-off was “disappointing personally.”
He said in the early days the company grew too quickly, but in recent years it had offset that early growth with a slower pace of expansion.
The company only recently became cash-flow positive, he said, and in a better financial environment probably would have been able to attract new funding.
"It's a lousy time to be out in the market looking for any kind of money," Krasnow told the Journal.
The sell-off covered some of the company’s debt, but Zoots still owes around $8 million to lenders, according to an attorney who was involved in the sales.
Former owners of four companies in Virginia and Pennsylvania that were acquired by Zoots before the sell-off have taken Zoots to court, saying the company failed to make $2.5 million in payments related to the acquisitions.
http://www.natclo.com/0807/chains.htm
U.S. Dry Cleaning First National Dry Cleaning Chain Continues Aggressive Acquisition Pace
U.S. Dry Cleaning Corporation (OTCBB:UDRY), the nation’s first consolidator of dry cleaning businesses, continued its aggressive acquisition pace, announcing today the completion of its acquisition of Caesars Cleaners. Previously owned by Jack Robinson and Theresa Paulette Winn, Caesars Cleaners is well known and respected for its quality service and customer satisfaction. Ms. Winn has agreed to remain with Caesars Cleaners as its Brand Manager.
“We are delighted to expand our presence in the Hawaii market while furthering our number one position in the Honolulu marketplace,” said Michael Drace, President of U.S. Dry Cleaning Corporation.
Drace continued: “We anticipate that as this acquisition is integrated into our existing operations the economies of scale that we can realize should enable us to achieve significant profitability for our Hawaii operations.” Mr. Robinson of Caesars Cleaners said, “We believe that this relationship will be very beneficial to our employees as U.S. Dry Cleaning has established its reputation as a company that believes in empowering its employees.” U.S. Dry Cleaning has completed six acquisitions since its inception and has a robust pipeline of potential chains. The company targets for acquisition profitable multi-store dry cleaning operations throughout the United States that are number one or number two in their markets. As a reflection of its remarkable growth, the company has more than doubled its current revenue run rate on an annual basis.
About U.S. Dry Cleaning Corporation U.S. Dry Cleaning’s mission is to create the premier national chain in the dry cleaning industry. The Company’s management team has extensive experience in retail consolidations and premier dry cleaning operations with a proven operating model. Management intends to rapidly acquire profitable, market-leading operations at accretive valuations. Each acquisition target is expected to be self-sufficient, and field management remains in place to ease the assimilation.
U.S. Dry Cleaning management believes the greatest value achieved in any consolidation is during the earliest phases. As a result, the company intends to grow as rapidly as possible to maximize shareholder value.
This release is for informational purposes only and should not be construed as a solicitation to invest. U.S. Dry Cleaning future operation results are dependent upon many factors, including but not limited to (i) the company’s ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans (ii) the company’s ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the company’s control and (iv) other risk factors discussed in the company’s periodic filings with the Securities & Exchange Commission, which are available for review at http://www.sec.gov under “Search for Company Filings.”
Fox news!
http://www.foxbusiness.com/video/index.html?playerId=videolandingpage& streamingFormat=FLASH&referralObject=1048704&referralPlaylistId=search |robbie%20lee&maven_referrer=staf
A History of the Garment Maintenance Industry
http://www.natclo.com/dp/dp1.html
US Dry Cleaning buys four-store chain in Hawaii
http://www.natclo.com/0712/newsmakers.htm
U.S. Dry Cleaning Corp. has signed an agreement and plan of merger with Robinson Corp., doing business as Caesars Cleaners, a Honolulu, HI, drycleaning business that has four stores and a central operating plant.
Under the agreement, U.S. Dry Cleaning would acquire Robinson Corp. for $2.1 million, which is to be paid in cash, convertible and assumed debt, and shares of common stock of U.S. Dry Cleaning.
When concluded, the acquisition would add more than $2.2 million to U.S. Dry Cleaning's existing $10 million annualized run rate and increase the expected revenue for the company's Hawaiian operations by 40 percent.
Along with the previously announced acquisition of a central California drycleaning business with revenues of $6.5 million, this transaction is expected to bring U.S. Dry Cleaning's annualized revenue run rate to more than $18.7 million.
Caesars Cleaners, the brand name of Robinson Corp., has been owned and operated by Thurston John Robinson since 1972. Robinson followed in the footsteps of his father and grandfather, who had worked in the laundry and drycleaning industry since 1930. He is retiring after 35 years of building his business.
Theresa Paulette, who has been general manager for 18 years, will stay on to manage and expand the operation.
“The acquisition will expand our market share in Hawaii, and is expected to increase revenues to more than $7.6 million, ” said Michael E. Drace, chief operating officer and president of U.S. Dry Cleaning, Inc. “The drycleaning industry has been a stable market since its inception, and it is poised for growth in an era where personal service is valued at a premium, ” he added.
Drace said the company’s strategy is “to become the first national chain of premier drycleaning businesses."
U.S. Dry Cleaning is focused on acquiring profitable businesses that hold leading shares in their individual markets. Each acquisition target is expected to be self-sufficient and field management is expected to remain in place to ease the assimilation.
Over the last year and a half, U.S. Dry Cleaning has completed acquisitions with combined annual revenues of more than $9 million. The company plans to rapidly acquire profitable, positive cash flow operations, identifying acquisition candidates by revenue stream, location, market share, quality of work, productivity and customer loyalty.
In July the company completed a $6.1 million initial public offering and is trading on the Over-the-Counter Bulletin Board under the symbol UDRY.OB.
U. S. Dry Cleaning sets sites on creating chain through acquisitions
A California company, U.S. Dry Cleaning, is aiming to create a nationwide drycleaning chain through acquisitions of profitable, high-volume cleaning businesses.
In July the company completed a $6.1 million initial public offering and is trading on the Over-the-Counter Bulletin Board under the symbol UDRY.OB. The company has also raised $10.5 million in private capital since its inception.
The company said the money will be used “to advance U.S. Dry Cleaning’s plan to be the industry’s first major consolidator creating a premier national brand.”
According to a company fact sheet, the business strategy involves acquiring profitable companies that lead their markets and have more than $5 million in annual revenues.
Acquisitions will be made with a combination of stock and cash. Senior management of acquired companies is expected to remain in place during the assimilation.
“We have a strong business plan to grow rapidly by acquiring profitable drycleaning businesses that are number-one in their markets throughout the United States, ” said Robert Y. Lee, CEO, director and co-founder of U.S. Dry Cleaning. “Consolidation will create accretive value through economies of scale, operational synergies, best practices and professional management of the highest quality. ”
Over the last year and half, U.S. Dry Cleaning completed acquisitions with combined annual revenues of about $10 million.
The company’s web site, www.usdrycleaning.com, lists 13 Young Laundry and Dry Cleaners locations in Hawaii and 18 locations in California under Roadrunner Cleaners and Boston Cleaners.
Last month the company announced a purchase agreement to acquire a Fresno, CA-based drycleaning firm that has 18 stores around Fresno and two in Arizona. The acquisition would increase the company ’s annualized revenue by $6.5 million. Three previous acquisitions established annual revenues of $10 million.
U.S. Dry Cleaning expects that the acquisition will be completed before the end of October 2007.
The transaction includes four affiliated companies owned and operated for two generations by Fred Jones and his son, Tom, with daughter Melinda Brooke operating the stores in Phoenix and Tempe, AZ. The businesses are Team Enterprises, Inc., Bell Hop Cleaners of California, Inc., Team Equipment, Inc. and Fabricare Services, Inc.
Operating under the trade names One Hour Martinizing and Regency Cleaners, the chain has a base of customers served by an infrastructure of office, management, training and operations staffs. In addition, the business uses the Green Earth cleaning process.
Under the purchase agreement, U.S. Dry Cleaning would acquire the business for $6.1 million, half of which would be paid in the form of shares of U.S. Dry Cleaning common stock.
Lee said that Tom Jones would stay on for three years to help build the market, increase revenue and profitability, and integrate the company into U.S. Dry Cleaning's national strategy.
“We intend to rapidly become the country's premier drycleaning chain, benefiting our employees and communities through outstanding service and providing the opportunity to participate in the growth of a public company, ” Lee said.
U. S. Drycleaning will identify acquisition candidates by revenue stream, location, market share, quality of work, productivity and customer loyalty. The company believes that the industry is entering a consolidation phase as older proprietors and recent inheritors seek returns on long-standing businesses.
With management of acquired companies remaining in place, U.S. Dry Cleaning said it can create value through economies of scale, best practices and sophisticated management. Revenues could be increased through add-on services such as expanded pick-up and delivery, on-site alterations, household service beyond clothing, smoke restoration, shoe repair, etc.
One of the two co-founders of the company is experienced in the drycleaning business. The other has extensive experience in retail consolidation.
Michael E. Drace, the company’s chief operating officer, has been in the industry since 1969 and was previously president and principal shareholder of Young Laundry and Dry Cleaning in Honolulu, HI.
Lee, the company’s CEO, previously led the growth of Video City, a retail video store consolidation, from an 18-store chain to a multi-state operation owning and managing 350 corporate stores and 150 franchised stores nationwide.
“Our management team is highly experienced in retail consolidation, and we believe that the ‘first mover’ consolidating any market is able to acquire market-leading businesses at the most favorable prices, ahead of potential competition, ” Lee said. “We believe it is the early stage of consolidation that reaps the greatest financial rewards for all parties. ”
So you want to sell your business
http://www.natclo.com/0705/gershenson.htm
Have you thought about selling your business? If you have, there are things you can do to increase the value of your company. With the proper preparation, you might receive more money for your company than you expected.
Before you think of selling, sit down and determine if you can afford to deprive yourself of the money-making machine that you own.
Take it from me; it can be a very frightening situation. Giving up the weekly paycheck and the fringe benefits that go along with ownership is a life-changing event.
Winston Churchill said, “Some regard private enterprise as if it were a predatory tiger to be shot. Others look upon it as a cow that they can milk. Only a handful see it for what it really is — the strong horse that pulls the whole cart.”
Are you ready to give up your horse?
So what is next?
You make your decision and you are ready to move on with your life and sell the horse. What do you do next?
First, if you are keeping two sets of books, get rid of the second set. The buyer might need to get a loan based on what your sales are or have been. Declaring too little income could keep the potential buyer from borrowing sufficient funds to close the deal.
If your sales are in the multi-millions, chances are you are declaring everything. Your company might be the target for one of the companies that is looking to acquire a number of high volume drycleaners and subsequently do an IPO.
Watch the headlines for US Dry Cleaning Corporation. US Dry Cleaning is a new company that hired Deborah Rechnitz away from ownership of Methods for Management. Because US Dry Cleaning is a public company, you can get all their corporate information on the internet.
The filings with the S.E.C. make for interesting reading. US Dry Cleaning currently owns three companies, one in Hawaii and two in California. Their acquisitions have all been central plants with dry stores.
In addition to US Dry Cleaning, Zoots and Men’s Wearhouse are rumored to be looking to expand nationwide.
How are these major organizations going to measure the value of your company? Will they use a ten to 12 multiple of monthly gross sales or a four to six multiple of your net profit? Perhaps the buyer will use a combination of both measurements.
Will that methodology work for you? Can you accept 65 percent or 75 percent cash and the balance in stock to replace the horse you are selling? If you are a “C” corporation, will they buy the stock or just the assets?
Speaking of corporations, is your business a “C” corporation, an “S” corporation or some other kind of business entity?
If your company is a “C” corporation, you will have a major tax problem. If you find someone who is willing to buy the “C” corporation’s stock, and not the assets, you could reduce the selling price to reflect your tax savings.
It takes 10 years to switch from a “C” to an “S” corporation. Do you want to wait 10 years to sell?
Finding a broker
Most importantly, find the business broker who sells the largest number of drycleaning plants in your city. That broker who sells the most locations knows the largest number of potential buyers with the greatest amount of financial resources.
Prior to signing a listing agreement, find a good business and tax attorney to help you with negotiations and any potential IRS problems.
The buyer might want you to finance his purchase. A friend of mine did that and the buyer eventually declared bankruptcy. My friend, who sold his plant, and retired, is no longer retired. If you finance the sale, demand the same kind of security a bank requires.
What will a buyer look at?
The first thing a buyer will look at is your sales volume and the overall profitability of your company. How profitable is your organization?
Ask your CPA about EBITDA. You need to know what sophisticated buyers are looking at.
Perhaps all the buyer is interested in is your sales. The buyer may feel that he or she can do a better job than you do, and make more money than you have been making. Thus, your profitability may not mean as much to that individual.
The buyer will want to look at your leases, how much time is left on those leases, what your rents are, and any other costs. A buyer who is sincere will read those leases and go over them with a fine-toothed comb.
Your store location or locations are extremely important. How is their appearance? Does your signage stand out from the crowd?
Can you drive by your plant and be proud of the location?
Can you walk up to it, look in the window and feel good that you run a neat, clean business that would be desirable to both the consumer and the potential buyer.
Are you fully computerized? Do you still write tickets by hand? Are you using the old file card system for order location?
A good computer system, as I have continuously pointed out, is imperative in the profitable operation of your business.
What is your price level? Are you doing 99-cent laundered shirts or $3.50 shirts? How high are your drycleaning prices? Are you charging $3.50 or $7.50 for a pair of pants?
Your sales and production staff is very important to the potential buyer. That buyer might secret-shop your plant. It is a fast and easy way to determine the quality of your service and the quality of the work you produce.
How experienced are your employees? Are they minimum-wage workers or old timers who might be slightly over paid due to their length of service with your company? What is employee turnover like?
The age and condition of your plant equipment and delivery vehicles will be scrutinized. Are you a perc operation? Will your perc machine need to be replaced?
Do you have environmental issues? How many spills have occurred that you do not know about?
Will the buyer or the buyer’s finance company want a Phase 1 or Phase 2 test?
How is the competition in your neighborhood? Is there a cleaner on every corner? Does that cleaner on the next corner know what he is doing? Have you secret shopped your competition?
Questions from buyers and employees
After you have answered these questions, you will be better prepared to face the onslaught of buyers. The buyers will ask the craziest questions, so get ready.
Be prepared for your employees to question why strangers are visiting your plant. If you have a seven-day operation, it will be difficult to hide the potential buyers unless they visit after closing.
Wrapping up your package
Working with your accountant is of paramount importance. You know what your salary is, but you will need to know the offset of your salary. Salary offset is the amount of money it would cost the company to replace you with an employee. Payroll taxes, interest expense and depreciation are valuable numbers.
Itemize everything that the business pays for that is personal in nature. You might be surprised as to what that total comes to.
If you have been paying cash, you will now be writing checks for those items, assuming your CPA allows you. Start with insurance, gas and other expenses for your cars, lunch, travel, cell phones, and the free cleaning and other services you get. It will be your accountant ’s job to help provide that information.
Now total all the one-time expenses you have had over the last three years. Painting the buildings, designing a new logo, or paying off a lawsuit are all non-reoccurring expenses that can be added back to increase the value of your company.
All of that information, and more, should be put into a presentation folder by your business broker. The broker is going to get a percentage of the selling price, so be certain your broker earns that commission.
U.S. Dry Cleaning Names Industry Veteran Chief Operating Officer
U.S. Dry Cleaning Corporation
(OTCBB: UDRY) ("U.S. Dry Cleaning") today announced that Deborah Rechnitz, one of America's top consultants in the dry cleaning industry, will join the company as its Chief Operating Officer. The announcement was made by Robbie Lee, Chief Executive Officer of U.S. Dry Cleaning, the nation's fastest-growing chains of dry cleaning stores. U.S. Dry Cleaning increased its revenue by 125% with the acquisition of two chains during the first quarter of 2008.
"Deborah has been a consultant for U.S. Dry Cleaning since January of last year and has been instrumental in our last two acquisitions, rapidly assimilating them into our operations," said Mr. Lee. "She continues to help us maximize economies of scale, enabling U.S. Dry Cleaning to achieve significant cash flow improvement and thereby increase shareholder value," he added.
Ms. Rechnitz has been recognized as a top consultant in the dry cleaning industry for several years, having worked for many of the largest companies in the United States, Canada and Australia. She has also been Executive Director of the Northwest Drycleaners Association and is a regional Vice President of the International Drycleaners Congress.
"I believe that U.S. Dry Cleaning has a solid plan for growth in the midst of a rapidly changing industry," Ms. Rechnitz said, noting that the consolidation of the dry cleaning industry is following the same paths as other highly fragmented industries. "U.S. Dry Cleaning is the first company to truly recognize the opportunity in consolidation and I'm delighted to be a part of its exciting future."
Ms. Rechnitz holds BA and BS degrees from the University of Colorado, as well as an MBA from Case Western Reserve University.
There are more zoots stores located in Massachusetts, Rhode Island, and New Hampshire.
zoots locations
http://www.zoots.com/LOCATIONS/storelocations.aspx
They pick up and deliver your dry cleaning at home
Office Delivery
ZOOTS is the largest dry cleaner on the East Coast and currently services over 150 corporations and office buildings with twice-a-week pick-up and delivery service.
Carpet Cleaning Experts
Count on ZOOTS for all your carpet cleaning. ZOOTS will work with you to design a customized cleaning program for your specific needs that will save you time and money - and keep your home looking great.
24/7 Live Emergency Flood Services
Water damage never happens when it's convenient. ZOOTS is on call 24 hours a day, 7 days a week - whenever emergencies may occur. As the most trusted name in cleaning, ZOOTS can handle all aspects of water removal, structural drying, and mold remediation.
Mold and Mildew Experts
Immediate response to mold and mildew reduces damage. ZOOTS is on call 24 hours a day, 7 days a week - whenever you need us.
Expert Fire and Water Restoration Services
As the largest laundry and dry cleaning companies on the East Coast, ZOOTS is committed to providing the best garment restoration service and customer care available.
Our experienced staff is trained to fully assist clients from the moment we arrive at a restoration job until the garments are restored and delivered.
good job going green
http://www.zoots.com/OURCOMPANY/HealthierCleaning.aspx
U.S. Dry Cleaning Corporation Acquires Competitor Increasing Annualized Revenue to Over $22 Million and More Than Doubles Its Revenues From Last Year's Same Quarter
U.S. Dry Cleaning Corporation (OTCBB: UDRY) ("U.S. Dry Cleaning," "USDC") is proud to announce that it has acquired the assets of Zoots Corporation, located in Portsmouth, Virginia. Zoots is a premiere chain on the east coast and this acquisition marks the emergence of a new geographic area for USDC giving it a presence on both coasts.
Zoots is the second acquisition USDC has made this quarter. This puts USDC on track to achieve its goal of a $100 million revenue run rate by the end of 2008. In February, USDC acquired the leading dry cleaning business in Central California. Together the two acquisitions will increase the Company's annualized revenue run rate by 120%.
Robbie Lee, Founder and CEO, USDC said, "We are determined to carry out our game plan of buying market share leading companies that have strong cash flow. With this acquisition of Zoots and our previously announced acquisition in February of Team Enterprises Inc., and their related entities in Central California, we are on track to achieve our goal of a $100 million run rate by the end of 2008. The acquisition brings revenue, volume and talent to USDC. Let me assure our shareholders, this is our first of several planned acquisitions in the eastern half of the U.S."
According to the terms of the acquisition, USDC paid a total of approximately $1.9 million, which included approximately $940,000 in cash and the balance in a short-term note.
William Wall, formerly of Zoots and now General Manager of USDC Portsmouth, Inc. stated, "We are very enthusiastic about joining the USDC family and excited to be part of the effort to create the nation's premier dry cleaning chain."
About USDC Corporation
USDC'S mission is to create the premier national chain in the dry cleaning industry. The Company's management team has extensive experience in retail consolidations and premier dry cleaning operations with a proven operating model. Management intends to rapidly acquire profitable, market-leading operations at accretive valuations. Each acquisition target is expected to be self-sufficient, and field management will remain in place to ease the assimilation.
USDC Management believes the greatest value achieved in any consolidation occurs during the earliest phases. As a result, USDC intends to grow as rapidly as possible to maximize shareholder value.
This release is provided for informational purposes only and should not be construed as a solicitation to invest. USDC'S future operation results are dependent upon many factors, including but not limited to (i) the company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the company's ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the company's control; and (iv) other risk factors discussed in the company's periodic filings with the Securities and Exchange Commission, which are available for review at http://www.sec.gov under "Search for Company Filings."
In accordance with a December 5, 2006 agreement, Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides USDC Corporation ("the Company") with consulting, business advisory, investor relations, public relations and corporate development services. CFSG1 receives only restricted stock as compensation from the Company. CFSG1 may also choose to purchase the Company's common stock and thereafter liquidate those securities at any time it deems appropriate to do so. For more information please visit www.cfsg1.com.
Company Contact
Rick Johnston
Director of Shareholder Communications
Tel: 760-668-1274
Email: Rick@usdrycleaning.com
www.usdrycleaning.com
Investor Relations:
Stanley Wunderlich
CEO
Consulting For Strategic Growth 1
Tel: 800-625-2236
Fax: 646-205-7771
Email: info@cfsg1.com
Web site: www.cfsg1.com
sorry i was late with that, i've had a tough month.
Indicators that this might be going somewhere soon.
Volume is going up
RSI is about to cross 50
DMI shows + crossing up through - and + is about to break through the ADX line
Accumulation is up
MACD has crossed also
bollinger bands are tightened up
"Under the terms of acquisition, half the purchase price was paid in the form of shares of U.S. Dry Cleaning common stock valued at $1.50 per share. The remaining was paid in a combination of cash and notes, which are convertible into USDC stock at $2.50 per share."
Why would anyone agree to a sale where they only receive stock valued at 1.50 a share and notes convertible at 2.50 and some cash?
U.S. Dry Cleaning Corporation Adds More Than 60% to Company Revenues by Completing the Acquisition of the Leading Dry Cleaning Chain in Central California
U.S. Dry Cleaning Corporation (OTCBB: UDRY) ("U.S. Dry Cleaning," "USDC"), the first mover in consolidating the nation's dry cleaning industry, today announced it has completed the acquisition of the #1 dry cleaning business in Central California.
The acquisition, completed on February 14, 2008, increases USDC's annual revenues by over 60% and adds approximately $6.5 million in revenue to USDC's existing $10 million annualized run rate.
Under the terms of acquisition, half the purchase price was paid in the form of shares of U.S. Dry Cleaning common stock valued at $1.50 per share. The remaining was paid in a combination of cash and notes, which are convertible into USDC stock at $2.50 per share.
Robert ("Robbie") Y. Lee, CEO of U.S. Dry Cleaning, said, "This profitable chain of stores represents an exceptional financial and strategic addition to our company. With this acquisition, U.S. Dry Cleaning increases its annualized run rate to over $16 million -- nearly doubling our revenues from Fiscal Year 2007."
Mr. Lee continued, "The Jones family has built this company over two generations into a profitable business with a commanding market share. We have invested a great deal of time and effort in preparing for this relationship and enlarging the USDC family. Tom Jones and his family have created one of the premier chains in the nation and have done a wonderful job in building a large base of loyal customers, profitable revenues and most importantly employees committed to incredible customer service."
Tom Jones stated, "This was a very important decision for our company, and we put a great deal of thought and time into making it. In the end we decided the best future for our company, employees and community was to join the USDC family. We believe in the USDC business plan, and we look forward to the benefits of our substantial equity stake. We are excited to be such an integral part of a corporation that is becoming the nation's leading dry cleaning consolidator. With the added corporate resources that USDC can offer as a public company, we expect further increases in our market share."
I understand that the movement is good. When I first started to look at this stock it was trading around $2. Much lower now.
the stock is moving fine, it went up ten cents on that news which wasn't anything surprising since the filings for Lee's stock were already out. .78 to .88 isn't a big enough move? then how about at the beginning of this month when it went from .70 to over 1.20? Want to see a stock that doesn't move, look at cccff, its been at 2-3 cents since i saw it 6 months ago.
Ok! Sure they bought. The stock is still not moving. Positive news. Stock is still not moving. I know that stocks go up and they go down and the real goal is where they are at the end of the day. Something just real fishy about the whole same story from 10 years ago with a different but same type of company with the same business plan/mind set. Hope it works out.
U.S. Dry Cleaning Corporation (OTCBB: UDRY) ("U.S. Dry Cleaning") announced today it has reported results for the Fiscal Year ("FY") that ended September 30, 2007. For the year, U.S. Dry Cleaning reported a 38% increase in revenue over the same period in FY 2006.
In its Annual Report for FY 2007, filed with the Securities and Exchange Commission, U.S. Dry Cleaning reported revenues of approximately $8.4 million compared to revenues of approximately $6.1 million in the prior fiscal year
points-
! so if it has 35 million in revenue including purchase of the other dry cleaning company?
! if not the growth rate isn't too bad
! I still can't figure out if they are really trying to scam or not. one thing to think about though is.... why are all of them holding so much stock? right now at 88 cents most probably are at 50% losses on their stock holdings or at least 20%
! I'm sure they want this stock to move up at least past a dollar and they probably won't be selling anytime soon.
! I'm thinking it will be up to the 1.25 range fairly soon
just because it might be a scam doesn't scare me from making some money
Robert Y. Lee's latest purchases
date: 01/03/2008
shares bought: 138,350
share price: 1.00
cost of shares: $138,000
payment agreement: $50,000 cash + promissary note 88,350 due june 30, 2008
date: 01/09/2008
shares bought: 50,000
share price: 1.15
cost of shares: $57,500
payment agreement: promissary note 57,500 due june 30, 2008
Robert Y Lee 918,350 ~4.5%
Robert Y. Lee Charitable Foundation 240,000 ~1.1%
Rhoton Family trust 621,053 ~3.0%
Michael E. Drace(management) 1,038,226 4.8%
Earl Greenburg(management) 416,826 1.9%
Anthony J. A. Bryan(management) 210,000 1.0%
Martin Brill(management 762,444 3.5%
total shares owned= 19.8%
21,726,098 shares of common stock outstanding at 01/11/08
All of this news about aquiring and the CEO purchasing stock, has done nothing for the stock. Has traded lower. The exec's must be selling into there own news. Looks like the same old scam from 10 years ago.
woo hoo back down to the 70's who knows when they are going to ever complete anything
It's finally happening
Looks like it's starting to move,up 26% today,
News is supposed to be coming out soon, seems like it's going to be good
I think the chart looks pretty positive now. But I am not very experienced with charts a second opinion would be great.
Well if the company is acquiring these other chains. It should help the stock move. Some of the companys last press releases state that they are buy 4 other chains that would add $20mm in Rev's. The stock did not seem to move that much on the news. I will have to watch this one to see if they are truely buying these chains. This was the same old story with Dry cleaning Depot. They kept announcing that they were buying up chains and nothing really happened. I think that the stock needs to get its share price up and get themself off of the BB listing, then should see some large investors come in. Usually they don't when the stock is trading pinks or BB.
What do you think is going on with this right now? I wonder if theres something good about to come up
Once it's over 1.50.....
Institutional investors jump in when it gets over 1.50. Then a much better market cap will allow others to trade and it will just snowball.
I have great expectations for this company GLTA
Yes very weird! I understand the concept. I understand that the management background is video stores. Just funny how two totally different dry cleaning companies at different times, came up with the same comparison to Block Buster Video. Strange, I think. I just hope that the people that were involved years ago that scamed everyone, are not involed now.
I agree that it is weird. But, i was just saying why i think the management was using that as a comparison.
This company is not the first publicly traded dry cleaning company to try or do this as they say they are. Dry Cleaning Depot (1992) was a scam, publicly traded and it used the exact same story with the Block Buster video theory etc. Before this UDRY. Just think it is weird.
I think they are only referring to blockbuster so much because most of the management comes from video city (a company that was competing with blockbuster on the roll up of the video rental industry). The management seems to have enough experience to complete their goals and enough personal goals to complete it quickly.
Still waiting for a good entry.
I was in the biz for a while. The margins are huge.
I am sure they do. I just thought that it is funny how they are using the same concept referring to Block Buster video as did Dry cleaning Depot did back in 1993 and U.S. Dry cleaning is claiming that they are the first to do what they are doing. This has been tried before. As I said before, great concept. Hope it works.
The management has a huge incentive to complete a quick roll up.............
There was a company back in 1992 that was called Dry Cleaning Depot. That company is no longer around. Funny thing is that they pitch there stock the same way this company is doing by relating it to Block Buster Video and Wayne Huizenga. Dry Cleaning Depot was a scam. This is not the first that a company has said that they are buying up the Ma' and pa' dry cleaners to consolidate just like Block Buster Video did with the ma' and pa' video stores. When I hear there advertisements, I laugh. Make sure that you do a good DD on this. Good concept, but has been tried before with the same story. This company is not the first to try as they say they are.
The fees they paid were huge.........
I'm not really great with organization, heres a couple interesting things.
RELATED PARTY TRANSACTIONS
On July 19, 2005, we entered into a Consulting Agreement with The Watley Group, LLC (“Watley”), which was ratified by the Board of Directors on September 15, 2005, with regard to capital referral fees, merger and acquisitions, and other services. Under terms of the Agreement, Watley was entitled to receive a success fee for identifying, coordinating, and otherwise facilitating the completion of acquisitions. In addition, Watley received success fees for identifying and facilitating fund raising. Watley was granted 1,026,668 shares of our restricted common stock. Of those shares, 102,666 were allocated to Mr. Martin Brill and 924,002 remained with Watley for services each performed. Further, for the year ended September 30, 2006, Watley received fees from the Company of approximately $1,518,000. Anthony J. A. Bryan, a member of our board of directors, is the father of Mr. John Bryan, Chief Executive Officer of Watley.
On September 15, 2005, the Board ratified the issuance of warrants to purchase 1,500,000 shares of our common stock for $.01 per share to Watley and warrants to purchase 1,500,000 shares of our common stock for $.01 per share to our Chairman, Mr. Robert Y. Lee. Such warrants are to vest if and when our sales equal or exceed $100 million on an annualized basis for a consecutive 90-day period. None of the warrants have been exercised and the warrants will all expire on December 31, 2006.
On September 15, 2005, the Board also acknowledged an agreement between Mr. Lee, our then Chairman, and Watley, whereby Mr. Lee received success fees from Watley in connection with acquisitions for which Watley receives an acquisition success fee from us. During the period ended September 30, 2005, Mr. Lee received fees from Watley of approximately $111,000 in connection with certain of his fund-raising activities on our behalf. Effective December 12, 2006, Mr. Lee’s agreement with Watley terminated and is no longer effective.
Pursuant to his agreement with Watley, during the year ended September 30, 2006, one of our directors, Mr. Earl Greenburg, received approximately $150,000 in referral fees from Watley for his assistance to the company in obtaining debt or equity financing.
Pursuant to his agreement with Watley, during the year ended September 30, 2006, our Chief Financial Officer, Mr. Haddon Libby, received approximately $220,000 in referral fees from Watley for his assistance to the company in obtaining debt or equity financing.
Pursuant to his agreement with Watley, during the year ended September 30, 2006, Mr. Martin Brill, an attorney for us and, since July 27, 2006, one of our directors, received approximately $220,000 in referral fees and reimbursements from Watley for his assistance to us in obtaining debt or equity financing. Previously, in connection with Mr. Brill’s services in advising, and coordinating professionals relating to our acquisitions, financings, and growth, Watley had transferred to Mr. Brill 102,666 of the shares of our common stock that Watley had been issued.
On July 29, 2005, we entered into a two-year employment agreement with Mr. Drace. Under the terms of such agreement, Mr. Drace shall be compensated $175,000 during the first 12-month period and $183,600 during the second 12-month period. Mr. Drace also qualifies for certain other benefits and a discretionary bonus. Mr. Drace will be entitled to participate in our stock option plan, once the plan is approved by the Board, at a level commensurate with his position. This agreement may be extended for three additional years by mutual consent, and entitles Mr. Drace to severance pay equal to six months’ salary in the event his employment is terminated without cause.
On October 21, 2005, we entered into a term sheet with Haddon Libby. Under the terms of such agreement, Mr. Libby shall be compensated $150,000 annually. At the Board of Director’s discretion, Mr. Libby could receive periodic performance bonuses that, on an annual basis, can be as high as three times his base salary. Mr. Libby also received 300,000 shares of our restricted common stock as a start-up bonus with a value of $0.1208 per share. Furthermore, Mr. Libby is entitled to severance pay equal to six months’ salary in the event his employment is terminated without cause.
Effective December 12, 2006, we entered into a three-year employment agreement with Robert Y. Lee. Under the terms of such agreement, Mr. Lee shall be compensated a base salary at the rate of $20,000 per month until, for any 30-day period, our company achieves revenues from normal operations in excess of $4,166,667 and positive four-wall income for all stores considered in the aggregate for the same 30-day period, and $25,000 per month thereafter. Mr. Lee is also entitled to a bonus represented by a promissory note for his benefit in the principal amount of $200,000, of which $50,000 is payable at the earlier of the expiration of his employment term under the agreement and the closing by the company of a debt or equity financing of at least $1,500,000, and the balance of which is payable upon the earlier of the expiration of his employment term under the agreement and the closing by the company of a primary issuance of the company’s stock with gross proceeds of at least $3,000,000. In addition, Mr. Lee may be entitled to additional performance bonuses in the amount of $250,000 once the company reaches annual run-rate revenues in the amount of $50,000,000 and $500,000 once the company reaches annual run-rate revenues in the amount of $100,000,000. Furthermore, Mr. Lee is entitled to receive fully vested options under the company’s stock option plan, once the plan is approved by the Board, to purchase an aggregate of 800,000 shares of the company’s common stock, at exercise prices ranging from $3.50 to $10.00 per share. The company also agreed to pay an expense allowance for an automobile in an amount of $2,000 per month.
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US DRY CLEANING INC
http://www.usdrycleaning.com/homepage.htm
Corporate Headquarters:
US Drycleaning Corporation
125 E. Tahquitz Canyon, Ste. 203
Palm Springs, CA 92262
Email: info@usdrycleaning.com
Administrative Offices:
US Dry Cleaning Corporation
1930 Auiki Street
Honolulu, HI 96819
(808) 843-3700
Email: info@usdrycleaning.com
FACT SHEET: http://www.usdrycleaning.com/pdf/USDC_FactSheet_09-04-07.pdf
Our Mission
For Our Shareholders
First and foremost we are a fundamental consolidator. We are 100% committed to make only accretive acquisitions and are driven to increase value to our shareholders. US Dry Cleaning Corporation's mission is to make smart acquisitions that make our company stronger and more profitable. We want to rapidly acquire more stores and top quality chains across America at a price that will achieve the goal of adding to the earning's per share and the increase in shareholder value.
For Our Customers
US Dry Cleaning Corporation is committed to deliver superior dry cleaning and top quality customer service to our customers .We want customers to be happy with the service and the quality from the moment they walk in the door. We strive to be environmentally friendly without sacrificing quality.
For Our Employees
Our philosophy is simple. If you treat people fairly and pay them well, they will be great long term employees. Good employees do a better job, are more dependable, and improve the overall operation. By paying employees more, they will cost the company less in the long run. Our goal is to improve the quality of life of every employee and keep that employee with us for the long term.
Dry Cleaning Industry
Dry cleaning is one of the most stable of all retail industries.
There are an estimated 27,000 dry cleaners in the U.S.
The market is estimated to be $8-$10 billion per year.
Nearly 70% of all dry cleaners have been in business over 5 yrs.
Nearly 50% have been in business over 10 years.
Many dry cleaning operations were founded by parents and even grandparents.
Many second and third generation owners would like an exit strategy.
US Dry Cleaning Corporation is a “first mover” into dry cleaning consolidation.
The dry cleaning industry is very similar to the video industry of 1986- prior to the consolidation by Blockbuster Entertainment.
-The Management-
The management and the board of directors bring many years of retail and corporate experience. Our experienced team has proven capable of managing aggressive retail consolidations. Some of the key personnel include the following:
• Robert Y. Lee CEO
• Michael E. Drace COO
• F. Kim Cox CFO
• Riaz Chauthani Director of Mergers & Acquisitions
• Deborah Rechnitz Exclusive Business Development Consultant
• Anthony John Bryan Sr. Chairman of the Board
• Earl Greenburg Director
• Martin Brill Director
Robert Y. Lee - CFO
“Robbie” Lee is the Founder Chief Executive Officer of the Company. He also serves as a Director. Mr. Lee has gained operational expertise through comprehensive private and public company CEO experience. During Mr. Lee’s 23-year retail store career, he has opened, acquired and operated over 500 video retail stores as either CEO or owner-operator. Prior to US Dry Cleaning Corporation, Mr. Lee lead the growth of Video City, a retail video store consolidation from an 18 store regional chain with $10 million in revenues to a top 10 nationally ranked Video Retail Company in 24 months.
Michael E. Drace - COO
Mr. Drace has served as President and principal shareholder of Young Laundry and Dry Cleaners since 1995. Mr. Drace has been in the industry since 1969. He has successfully overseen all phases of operations in an executive capacity for some of the nation’s largest laundry and dry cleaning companies. Mr. Drace has meaningful experience in corporate consolidation and integration of purchased companies subsequent to consolidation.
F. Kim Cox - CFO
Mr. Cox has more than 25 years of experience in executive management, public company accounting and finance, corporate governance, and mergers and acquisitions. Mr. Cox served in multiple executive leadership positions at Rentrak Corporation, a publicly-held information management company, from 1985 to March 2005, during which he acted as President and Secretary from June 2000 to March 2005, Executive Vice President, Secretary and Treasurer from 1999 to June 2000, and Executive Vice President, Chief Financial Officer, Secretary and Treasurer from 1995 to 1999. Prior to joining Rentrak Corporation in 1985, Mr. Cox was an attorney in private practice in Oregon. Mr. Cox received J.D. and M.B.A. degrees from Williamette University’s College of Law and Atkinson Graduate School of Management, respectively, and is a C.P.A. licensed in the State of Washington.
Riaz Chauthani - Director of Mergers & Acquisitions
Mr. Chauthani has bought, sold, or opened over 50 dry cleaning operations in the Southwestern United States. Previously , he was Director of Leasing for LaMancha Development, overseeing 250 shopping centers. In addition, Mr. Chauthani has also served as Director of Leasing at Western Royal Development in San Diego. Mr. Chauthani has a Bachelors degree in Real Estate Finance from the University of Southern California.
Deborah Rechnitz-Exclusive Business Development Consultant
Ms. Rechnitz has been an independent management consultant specializing in the Dry-Cleaning industry since 1980. As Managing Director of Methods For Management, Inc, a well known and highly respecting consulting company in the dry cleaning industry, she has represented dozens of the top regional dry-cleaning operations across the United States. Ms. Rechnitz is an internationally known speaker and the author of numerous management publications, including the best selling booklet "60 Ways to Maximize the Value of Your Business." Ms. Rechnitz has two Bachelor degrees from the University of Colorado as well as a MBA in Operations Management from Case Western University.
Anthony John Bryan Sr.-Chairman of the Board
Anthony “Tony” Bryan still serves as the non-executive Chairman of the Board of 360 Global Wine Company. He was previously a Vice-President and member of the Board of Directors of the International Division of Monsanto Corporation. Following his career at Monsanto, Mr. Bryan served as the President and CEO of Cameron Iron Works, as well as the Chairman and CEO of Copperweld Corporation. In additon, he has also served on the Board of Directors of several major companies including Federal Express, Chrysler, ITT, Koppers, Hamilton City Oil, PNC Corporation and Imetal (Paris, France). Mr. Bryan holds an MBA from Harvard Business School.
Earl Greenburg - Director
Mr. Greenburg is a former Deputy Attorney General for the state of Pennsylvania, and is a founding partner and current Chairman of Transactional Marketing Partners (TMP). Mr. Greenburg was the only 3-term chairman of ERA, the Electronic Retailer Association, and also served as the President of the Home Shopping Network (HSN). Previously, Mr. Greenburg was selected by Brandon Tartikoff to in the position of Vice President of Daytime Programming for NBC TV.
Martin Brill - Director
Mr. Brill is a senior partner at Levene, Neale, Bender, Rankin & Brill LLP . Mr. Brill has special expertise in complex reorganizations of publicly held companies influenced by securities law. Mr. Brill graduated from the University of California, Los Angeles and the UCLA School of Law. He is a member of the State Bar Association of California, as well as the American, Los Angeles County, Beverly Hills, and Century City Bar Associations.
At the end of August, US Dry Cleaning Corporation (UDRY.OB) began trading on the over-the-counter bulletin board under the symbol UDRY as the first dry cleaning retail chain to be publicly traded in the United States. On July 19, 2007, the company completed an initial public offering of $6.1 million, which will be used to advance the Company’s plan to be the industry's first major consolidator in order to create a premier national chain.
Director and CEO Robert Y. Lee stated:
We are very proud to announce that our stock is now available to the public. We have a strong business plan to grow rapidly by acquiring profitable dry cleaning businesses that are number one in their markets throughout the US. Consolidation will create accretive value through economies of scale, operational synergies, best practices and professional management of the highest quality.
US Dry Cleaning has a significant first-mover advantage to consolidate the fragmented, $9 billion US dry cleaning market as the first public company with access to the capital markets following its recent IPO. The company anticipates an AMEX or Nasdaq listing for its shares by the end of this year, further increasing its visibility among investors. The management team is experienced with a strong business background in both dry cleaning operations and acquisitions. Ample opportunities exist for consolidation among the estimated 27,000 dry cleaning operations in the US, and the company offers investors an easy to understand, pure-play business model that is economically insensitive. The company expects to be EBIDTA positive by mid-2008 with a revenue target of $50 million at that time by executing on a focused strategy to only acquire leading dry cleaning operations with at least $5 million in annual sales. Beyond mid-2008, the Company expects to report meaningful net income at revenues of $100 million.
The dry cleaning industry in 2007 is very similar to the retail video industry in 1987 with fragmented "mom and pop" type operations with no large national company dominating the scene. US Dry Cleaning's business model is very similar to the model created by Wayne Huizenga at Blockbuster Video (NYSE: BBI) in 1986. This consolidation model consists of buying successful chains that have a dominant market share, and then use the resources and economies of scale of a public company to improve the profits of the chain by reducing existing operational costs.
The Company’s mission is to be a fundamental consolidator that is totally committed to making only accretive acquisitions and all decisions are driven to increase value to shareholders. US Dry Cleaning's mission is to make smart acquisitions that make the company stronger and more profitable. The Company will take advantage of a skilled management team, corporate organizational experience, as well as having the ability to access capital associated with a large public company. Other efficiencies of their business model include: centralized management that eliminates unnecessary personnel, the use of modern equipment as large operators can afford the newest technology to greatly reduce the cost per garment, volume buying power that also applies to marketing & advertising initiatives, minimized cost of opening a new storefront, and brand name recognition for customers and investors as the company grows to be a successful regional to national expansion play.
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