CLA Connect Open Forum

1.  Laundromat For Sale!

Posted 12 days ago
Hello Distinguished CLA Members,
I need your opinions, thoughts and insights on this issue: We have a Laundromat that is 1/2 [half] a block from ours. It's been there for at least 20 years or more but under new ownership in the last 6 or so years. Afer we opened in 2015, they lowered their prizes in order to either drive us out or be able to compete but we never wavered and stayed on course.  Then in November of last year,  the owners approached us and asked if we could pay off their lease, which expires in September of this year and they would take all their machines and go away [close down]. To me that was the worst business proposal I've ever heard and we thought that they were joking. However,  after I gave them my "to be expected" sarcastic response, they asked if we would buy it at $50K. We are in the process of doing our due dilligence. For one, the size of the Laundromat is about 1900 sq ft, with old machines including top loaders, high rent [$2902/month] and their water and sewer bill is more than twice ours. Here are my concerns:
1. It is too close to our current Laundromat [half a block away],
2. The machines are very old,
3. The rent is a little less than what we are paying for our much larger space of 3100 sq ft,
4. The utility bill [water and sewer] and very high...could be because of having older machines and top loaders.

Thanks for your advice and insights in advance.

------------------------------
Chris Asanya
Store Owner/ Employee
Clothes Quarters Laundromat
Essex Junction VT
------------------------------


2.  RE: Laundromat For Sale!

Posted 12 days ago
You opened a competing mat 3 years ago and half a block away.  The other owner should have seen this coming and taken steps to upgrade and improve their mat, but they did nothing as many coin mat owners do and are now suffering.  The rent is ridiculous.  Just wait it out.  They will eventually close.  If the rent is that high, the LL isn't going to offer a lower deal and I doubt anyone will try to open another mat there.

------------------------------
Chris Mallam
Norfolk VA
------------------------------



3.  RE: Laundromat For Sale!

Posted 12 days ago
If the equipment is very old what would you be buying for $50,000? Add to that $35,000 rent. What I would be concerned about is who will be moving in? They will have to install all new shiny machines.

------------------------------
Curt Harrington

------------------------------



4.  RE: Laundromat For Sale!

Posted 11 days ago
The only realistic danger I see,

would be be that the landlord (if a private guy)

may any decide to put in machines,

in in this neck of the woods, landlords who have

empty stores, open mats, they consider the space free.

------------------------------
MICHAEL SAYER
Store Owner/ Employee
DORVAL QC
------------------------------



5.  RE: Laundromat For Sale!

Posted 11 days ago
​My suggestion is wait and see. I think he is going to close and I doubt if some else will open so close to you.

------------------------------
DAVID JOSEPH
Store Owner/ Employee
Orange Coin Laundromat
Yorba Linda CA
------------------------------



6.  RE: Laundromat For Sale!

Posted 10 days ago
​I agree on the wait and see. It's obvious it wasn't working for him when you opened up shop. A new owner will have to make a large investment to compete with you with higher overhead/ft.

Keep us posted!

------------------------------
SEAN OWENS
Store Owner/ Employee

------------------------------



7.  RE: Laundromat For Sale!

Posted 9 days ago
7 months at $3,000 rent or so is $21,000, so guessing they think the equipment is worth $30K.  Without a proper lease, the store is worth zero IMO.  Can you buy the property ?  Can you find out the attitude of the LLD ?  Anything you can scratch up about the LLD / Property could be helpful....knowledge is power thing.

------------------------------
Les Monthei
Potential Investor
Redding CA
------------------------------



8.  RE: Laundromat For Sale!

Posted 9 days ago
Keep your store in tip top shape.  They'll close, the equipment is junk. The only value is in location and infrastructure.  You want to make a new person think twice before retooling the space.  The LL will try and get another laundry because it's expensive for him to make it a 'vanilla box'. The LL will tell a potential lessor just about anything to get a new tenant.


------------------------------
Timothy Foster
Multi-Store Owner/ Employee
Toledo
------------------------------



9.  RE: Laundromat For Sale!

Posted 9 days ago
Wait it out..they will close and you can recapture the market...any reasonable buyer will not open 1/2 a block away from a profitable Mat like yours...no need to panic you already have shown your Mat is superior in this area.


------------------------------
James Courtney
Distributor Employee
Commercial Financing Group
San Diego CA
------------------------------



10.  RE: Laundromat For Sale!

Posted 9 days ago
Thanks guys for all your advise and insights! I will keep you in the loop of how it pans out.

------------------------------
Chris Asanya
Store Owner/ Employee
Essex Junction VT
------------------------------