Posted on: Wednesday, June 15, 2005
Young Laundry merger in works
By Andrew Gomes
Advertiser Staff Writer
Young Laundry and Dryclean-ing, a 103-year-old Hawai'i company, plans to merge with a California firm trying to consolidate laundry businesses on the Mainland and in Hawai'i.
Eugene Tanner • The Honolulu Advertiser Mike Drace, Young Laundry president and chief executive officer, would become chief operating officer of U.S. Dry Cleaning as part of the merger but would continue to work out of Hawai'i. Financial terms of the transaction were not disclosed.
No changes for Young Laundry's 130 employees and 14 retail branches are expected, Drace said.
Besides the 14 retail locations, Young Laundry serves about 35 hotels, cleaning employee uniforms and guest apparel. The company also operates a uniform rental business.
"This merger is a fantastic opportunity for our company," Drace said. "It gives us access to significant resources that will allow us to improve service for our customers and upgrade our existing facilities."
U.S. Dry Cleaning is headed by Robert Y. Lee, an operator of dry cleaning companies in California and Nevada.
Young Laundry was founded in 1902 as the in-house laundry for the Alexander Young Hotel at Bishop and King streets in downtown Honolulu. Former Young Laundry owner David Applebaum sold the company's commercial laundry operations to American Linen in 1994. In the same year, Drace, then Young Laundry's general manager, bought the Young Laundry name and its retail operations.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.</>
Young Laundry would become a wholly owned subsidiary of upstart consolidator U.S. Dry Cleaning Corp. based in Palm Springs but continue doing business as Young Laundry, if the merger is completed as expected on Aug. 1.
Young Laundry and Drycleaning has 14 retail locations, including this one on South Vineyard Boulevard. The 103-year-old company will continue to do business under the Young Laundry name after its planned merger with U.S. Dry Cleaning Corp.
