ST. LOUIS — Angelica Corp. plans to sell or close its underperforming Edison, N.J., service center and reorganize into fewer markets, it announced Tuesday.
The center’s performance has depressed the corporation’s overall financial results in the New York market. Because it didn’t make the second-quarter progress that was expected, Angelica has decided to close or sell it given the underlying value of the real estate.
Angelica expects to sell or close the facility before the fiscal year ends, but the exact timing hasn’t been finalized. The corporation intends to fulfill customer commitments, work to find other providers for customers no longer in its market area, and seek to accommodate as many employees as possible at its other locations, if the facility closes rather than sells.
In conjunction with this decision, Angelica is streamlining its operations from nine to eight markets, thus providing more effective coverage at lower cost, the company contends.
“We are disappointed that Edison’s performance did not improve as expected in the second quarter,” says Steve O’Hara, Angelica’s chief executive officer. “While we believe this performance could improve with time and additional capital invested in the facility, we think that in order to maximize shareholder value, those resources could be better deployed elsewhere.”
Angelica, traded on the New York Stock Exchange under the symbol AGL, provides textile rental and linen management services to the U.S. healthcare market.
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