Hard times for dry cleaners
Modern Cleaners is closing while many others are struggling with higher costs
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It’s been 20 years since Tom Preiss – then age 16 – began working at Modern Cleaners.
He spent his time starching shirts and loading apparel into the machines while a virtual roller coaster of clothing glided by, en route to its owners.
But that coaster has stopped for the 77-year-old dry cleaning company, which, after four years of declining sales, will close its doors for good.
“It wasn’t an easy decision,” said Preiss who is now company president.
A variety of issues such as rising prices and a changing market pushed the company to the decision.
The area’s lack of skilled labor means the company has had trouble finding employees, said Keith Mudd, Modern Cleaners’ business consultant.
People tend to dress more casually than in the past, Mudd said, and washing machines have become more advanced, meaning the demand isn’t what it was.
And with food and fuel prices up, Preiss said, people view dry cleaning services as more a luxury item.
Others in the industry say they, too, have felt the pinch.
Jeri Svatek has co-owned Comet Cleaners with her husband Dan for 21 years and admitted dry cleaning can be tough.
She recently attended a cleaners’ convention and, for the first time ever, came away feeling a bit down.
“This year every vendor warned us of price rises,” she said.
The price for soap, fuel and even hangers is up, she said, noting a United States-imposed tariff on Chinese hangers that virtually doubled the cost of hangers overnight.
Dry cleaners must look into increasing their prices in order to stay alive, said Nora Nealis, executive director of the National Cleaners Association in New York City.
The problem is most cleaners are afraid to do it, she said, because they don’t want to lose customers or volume.
“It’s unfortunate,” she said. “I think more could survive if they had more faith in their customers.”
A quarter added on per garment won’t mean much to the consumer, Nealis said, but it adds up for the businesses. And with the $25,000 to $30,000 cost increases many cleaners face, that money could decide whether an employer maintains his health insurance or aid in deciding which groceries to buy.
“These are not frivolous dollars,” Nealis said. “These are life and death dollars.”
Closure was Modern Cleaners’ best option, Mudd said, noting there were several choices available.
“It is kind of like a poker match that unfolds over several years where you are waiting to see which company is going to fold or downsize first,” Mudd said in an e-mail. “Our shareholders collectively were not willing to wait this out.”
Allison Miles is a reporter for the Advocate. Contact her at 361-580-6511 or amiles@vicad.com.
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