Angelica Closing Memphis Plant

Posted June 2, 2017 at 2:00 pm

Angelica Corp., Alpharetta, GA, recently announced plans to close an Angelica Textile Services Inc. healthcare plant in Memphis, TN, according to news reports.

The closure of the plant, effective July 3, will result in the layoffs of 87 employees.

The move follows an April 3 announcement by Angelica of an asset purchase agreement with an entity affiliated with the investment firm KKR, under which a KKR affiliate would acquire substantially all of Angelica’s assets as a going concern in a transaction valued at approximately $125 million, plus certain assumed liabilities.

In a statement from Angelica regarding the Memphis layoffs, company President David A. Van Vliet said Angelica weighed its options carefully before deciding to close the plant. “Angelica has informed customers and employees of its plans to close the plant in Memphis,” the statement reads. “We thoroughly considered every option for this facility and the decision to close it was a difficult one based on the company’s business needs. We are continuing to serve customers through nearby Angelica facilities with no interruption of service.” Click here for details.