Zoots IPO
Zoots Inc.
The company serves 50,000 customers a week through about 75 dry-cleaning outlets and 115 home delivery routes in Connecticut, Massachusetts, New Hampshire, New Jersey, Rhode Island, and Virginia. Its name developed by a branding firm, Zoots boasts that it doesn't dry clean with perchloroethylene, a carcinogen typically used in the process.
Corporate has been going over every store to make sure the upcoming IPO will not only go smoothly but will be profitable.
Lots of room for expansion here, and their process can't be beat by the locals.
Buy this IPO!
The company serves 50,000 customers a week through about 75 dry-cleaning outlets and 115 home delivery routes in Connecticut, Massachusetts, New Hampshire, New Jersey, Rhode Island, and Virginia. Its name developed by a branding firm, Zoots boasts that it doesn't dry clean with perchloroethylene, a carcinogen typically used in the process.
Corporate has been going over every store to make sure the upcoming IPO will not only go smoothly but will be profitable.
Lots of room for expansion here, and their process can't be beat by the locals.
Buy this IPO!
posted by Chris at 3:18 AM
2 Comments:
"Corporate has been going over every store to make sure the upcoming IPO will not only go smoothly but will be profitable.
Lots of room for expansion here, and their process can't be beat by the locals."
Where to start?
By "going over every store" do you mean closing their failures? Their VERY LOUD failures? Zoots was given oodles of money to consolidate a fractured industry dominated by "mom & pops", they havn't even dominated a single market. Their size isn't born from growth of their business, it is a result of their purchasing of competitors - they have no idea what they are doing: they have to buy revenue streams and pay to retain the people who built those streams, while at the same time closing the 'bricks & mortars' they built but didn't know how to run.
They are NOT the dominate dry cleaners in a single town in which they exist in MA (their home state), the fact is: THEY cannot beat "the locals", so they are relegated to having to use their wads of gifted/unearned reserves to buy their more profitable competitors.
As far as their process, the dry cleaning solvent they use (Exxon DF200) is a volatile organic compound every bit the air pollutant that perc is (www.arb.ca.gov/toxics/dryclean/draftdrycleantechreport.pdf) and as a v.o.c contributes to smog. Exxon DF2000 also has a "high concern" to the EPA for hazardous water toxicty (http://www.epa.gov/dfe/pubs/garment/ctsa/docs/execsum.pdf). This petroleum product is hardly an Earth Friendly product (except in the eyes of its producer - those folks who brought you the Exxon Valdez) - but if you have a dry cleaners, or want to open one, you can easily buy a dry cleaning machine that uses DF2000, you see, their "process" isn't special either - in fact you can even lease one of their failed stores in MA or NH,(http://www.nationalcommercial.com/properties.php), you know, one of the stores they tried to build from the ground up.
I wouldn't bet my money on their ability to get me return.
Update (6/07): What's it say about a pre IPO company when the CEO AND THE CFO (!) jump ship at the same time?
Does that say "Buy this IPO"?
Post a Comment
<< Home