Iron City Executes Strategic Realignment

Posted January 15, 2015 at 6:59 pm

Iron City Workplace Services, Pittsburgh, recently announced the sale of its Tipton, PA, depot in the far eastern portion of its market area to UniFirst Corp. in what Iron City describes as a strategic move designed to expand its presence in its core market area.

Company President Philip Sonnenklar told Textile Services Weekly that the sale included a small portion of its contracts on the eastern periphery of its service area – roughly 10% of its total revenue. “This was done to strengthen Iron City to allow us to focus our resources on the growth area in which Iron City’s corporate headquarters is centered, between Pennsylvania, Ohio and West Virginia.”

Iron City sent letters this week to its customers in the eastern zone affected by the sale. Tipton, near Altoona, is just over 100 miles east of Pittsburgh. The company promised to work closely with UniFirst to ensure a smooth transition for all customers affected by the sale.

Consultant Jim Gutheim, James Gutheim & Associates Inc., Encino, CA, assisted in the sale.