Saturday, September 18, 1999
New ownership to expand Widmer's chain
BY LISA BIANK FASIG
The Cincinnati Enquirer
Widmer's Inc., the 89-year-old dry cleaner owned by the Olmstead family since 1950, is about to make a dramatic alteration: new ownership.
The upscale, eight-store chain has sold its assets to a Boston-based cleaning company that specializes in delivery, around-the-clock availability and drive-through locations. The company, called Zoots, the Cleaner Cleaner, plans to expand the chain “as rapidly as prudent.”
“We started to look for alternatives for growth, and at Widmer's, it's really unique in terms of its focus on customer service,” said Todd Krasnow, founder and chief executive of Zoots. “There aren't many people doing what (Widmer's owner) John Olmstead has been doing, and that really caught our attention.”
Widmer's name, its 175 workers and its management will remain. Mr. Olmstead has assumed the title of chief operating officer.
The companies did not disclose the purchase price. Wid mer's posted 1998 sales of more than $7 million.
The pairing is one of feasibility. Mr. Olmstead said Widmer's invested $2.5 million in the business in the past year and doubled its central cleaning operation in O'Bryonville. It operates the eight stores, 15 delivery routes and a carpet and furniture cleaning division. Widmer's has the capacity for further expansion, but it doesn't have the money to bankroll it.
Zoots does. The company has raised more than $50 million to pay for growth and has been shopping for service-oriented dry cleaners.
“The problem with any small business is there's always a shortage of capital,” Mr. Olmstead said. “They had the capital, they had the people to take this another step further, which I didn't have.
“When you find the right guy, you marry him.”
The dry-cleaning business is a tough one, for many reasons. Emerging environmental laws, government regulations and chemicals run costs high. But even worse, those in the business say, is that customer standards are on the rise.
“Customers have become much more sophisticated in what they need and what they want,” said Paul Szydlowski, owner of locally based Prime Valet Cleaners. “Today, you're being compared against the stars of industry.”
Indeed, Widmer's plan comes less than three months after its sister organization, Teasdale Fenton Cleaners, went out of business and closed its 12 Greater Cincinnati stores. Teasdale was owned by Mr. Olmstead's brother, Jim, though the two companies operated separately.
Mr. Olmstead said he's spoken to other dry-cleaning companies about a sale. Zoots' quality and philosophy of customer service best suited Widmer's plans, he said.
Mr. Krasnow plans to boost Widmer's in-store numbers and routes. He'd like to extend into surrounding communities not served by Widmer's.
“They have a lot of opportunity here to continue to expand,” he said.
Mr. Krasnow helped found Zoots in 1998 with Thomas Stemberg, who also helped him found the office supply store Staples. Mr. Stemberg is chairman of both companies.
Widmer's was founded by the Widmer family in 1910. In 1950, Delbert Olmstead bought the company. John Olmstead, his grandson, bought controlling interest from his father and brother in 1986.
Delbert Olmstead acquired Teasdale in 1940.
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