Angelica sells customer contracts service to Faultless Laundry
03 Sep '05
2 min read
Linen management solutions provider Angelica Corporation announced that it has sold to Faultless Laundry Company, customer contracts serviced by its Columbia, Illinois facility. The sale includes other selected assets associated with servicing those customers. Operations at that plant will be discontinued once all service activities are transitioned from Angelica's facility to the Faultless facility in St. Louis.
This transition is expected to be complete by the end of September 2005. Terms of the transaction were not disclosed. Notice was previously provided on August 15 to 66 employees at the Columbia plant informing them of their layoff status. Notice has been issued to the remaining employees commenting on the transaction, Steve O'Hara, Angelica's CEO said, "While company goal is to build the leading national healthcare linen services provider, growth must be accomplished in a profitable manner.
The Columbia, Illinois facility, which primarily services the St. Louis area, has not been profitable for some time and shows little near term potential to become profitable, especially given rising energy costs. In addition, this plant is on the outskirts of other plant clusters. The decision to close our plant in our hometown was difficult, but the only rational decision."
He continued, "They appreciate the hard work of associates in Columbia. They wish them well in their future endeavors and have made arrangements for assistance in helping them find new jobs."
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