Coyne Assets Sold to Cintas, Prudential
The results of an auction for the assets of Coyne Textile Services following a recent bankruptcy filing means that rival companies will take over Coyne’s businesses around the eastern half of the United States, and that the company’s headquarters plant in Syracuse, NY, will close.
Only 90 of the company’s 620 jobs will remain following the Oct. 29 auction, according to news reports. None of those jobs will be in Syracuse, where J. Stanley Coyne founded the business in 1929. “From the standpoint of Syracuse, it’s a sad thing,” said Stephen Selbst, an attorney for Coyne. “We’re sorry we couldn’t save more jobs.”
Employees facing layoffs are expected to receive one-to-six weeks’ worth of severance payments based on seniority in a deal negotiated by Coyne, Selbst said.Coyne will assume the cost of the severance package for its staff. While former employees are welcome to apply to Cintas for any open positions via its website, the company is not obligated to rehire any of the employees. Cintas has its own plant in the area, and recently announced plans for a new $16.5 million facility in nearby Clay, NY.
U.S. Bankruptcy Court Judge Margaret Cangilos-Ruiz approved the sale of Coyne’s assets to three industrial laundry companies for a total of $43.54 million, the reports said.
Specifically, Cintas, Mason, OH, submitted the high bid of $33.6 million at the auction for Coyne’s business in Syracuse; Albany; Buffalo; Cleveland; Bristol, TN; and London, KY. However, the purchase does not include its laundry facilities.
Prudential Overall Supply, Irvine, CA, had the high bid of $10 million for Coyne’s Richmond, VA, and Greenville, SC, operations. For more information on the auction, click here.
Coyne announced on July 31 that it was entering bankruptcy proceedings in an effort to restructure its debts in a bid to return to profitability. Prior to the auction, Coyne operated nine plants and 16 service centers serving 9,100 customers.