Staunton Steam Laundry Sells a Portion of its Business

James Gutheim & Associates Inc., Encino, CA, served as the financial adviser in the sale of the industrial rental business of Staunton Steam Laundry, Staunton, VA, to Cintas Corp., Mason, OH, according to a news release.

The sale resulted in a reduction in Staunton Steam’s staff, according to local news reports. The industrial customers that Cintas acquired include food processors, garages, car dealerships, small restaurants and others, said Staunton Steam Laundry President and CEO Lee Beam. The switch started April 20. Cintas will use its branches in Waynesboro, VA; Bedford, VA; or Cumberland, MD, for the additional work, the report noted.

“Due to this reduced business volume, some production and route positions were eliminated on the industrial side of Staunton Steam Laundry,” Beam said. The company did retain all its linen rental customers, which include hotels, motels, nursing homes, medical facilities, beauty salons and restaurants that use bed linen, table linen or salon towels, Beam said.

Staunton Steam also has experienced a reduced volume in its linen business due to COVID-19 and state-mandated business closures. “Like many businesses, we are currently working with reduced staffing, routes and business hours,” Beam said. “With that being said, the services that Staunton Steam Laundry continues to provide to our linen customers are essential. We will continue to provide clean products to our linen customers throughout this crisis and into the future.”

When asked how many employees had been laid off due to the acquisition and also due to COVID-19 issues, Beam said it was “confidential business information.” To read the full article, click here.