Coin Laundry Business is getting Corporate Attention

It looks like the Laundry Business has a new player. City Capital Corp. is looking to get into the coin laundry business and the dry cleaner business. They are sighting the same things I've been saying for years, 25% - 50% returns and a 98% business success rate! Here is the article:

Mar 23, 2009 09:30 ET

Despite Economic Downturn, City Capital Corporation Expands Operations

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City Capital Corporation

KANSAS CITY, MO--(Marketwire - March 23, 2009) - City Capital Corporation (PINKSHEETS: CTCC) has completed the first acquisition for its City Laundry, LLC subsidiary. The 2,000 sq. ft./30-machine laundromat purchased in February 2009 has annual revenues of approximately $108,000. City Laundry is currently in negotiations to close on fourteen other laundromats and dry cleaners in the Kansas City, Missouri area.

City Capital CEO, Ephren W. Taylor II, describes how reviving and refurbishing failing neighborhood businesses and providing employment for local residents fulfills the company's socially conscious mission. "Even though this first acquisition is a small mom-and-pop operation, we believe that the cleaners industry is advantageous for the company. It is a fragmented industry, yet it has a proven history of weathering, even thriving in economic downturns like we see today."

The Coin Laundry Association seems to agree. The industry group counts over 35,000 coin laundries alone in the U.S. "During periods of recession, when home ownership decreases, the self-service laundry market expands as more people are unable to afford to repair, replace or purchase new washers and dryers, or as they move to apartment housing with inadequate or nonexistent laundry facilities. The market size grows proportionately to the increase in population... people always need to wash clothes." (source: http://coinlaundry.org/)

According to the U.S. Bureau of Labor, total gross revenues for the industry are nearly $20 billion annually (source: 2007 U.S. Bureau of Labor). "More importantly," Mr. Taylor points out, "according to the Small Business Administration, these businesses have a 98% success rate nationwide, and they historically provide investors from 25% to 50% returns in all economic climates. That translates into reliable cash flow for the company and a strong, stable job source within the community." ...

To read the rest of the article follow this link Market Wire Press Release

Brian
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