Spartanburg County facility may close after N.Y. firm declares Chapter 11
A 66-employee Duncan, S.C. industrial laundry facility could shut down next month due to Syracuse, N.Y.-based Coyne Textile Services’ ongoing Chapter 11 bankruptcy proceedings. While the company hopes to retain the bulk of its 620 nationwide employees, those in its Duncan and Richmond, Va., facilities could be subject to layoffs after they are sold.
Under the current terms, Irvine, Calif.-based laundry giant Prudential Overall Supply would purchase Coyne’s Richmond facility as well as the assets and customer contracts of its Duncan facility. The purchase agreement could also include associate service centers in Winchester, Va.; Raleigh, N.C.; Atlanta; and Beckley, W.Va.
Founded in 1929, Coyne Textile Services grew into one of the nation’s largest privately owned industrial laundry companies before seeking to reorganize in July under Chapter 11 proceedings. In bankruptcy filings, the company listed between $10 million and $50 million in assets, and between $50 million and $100 million in liabilities.
The company plans to sell substantially all of its assets through three asset purchase agreements, which according to court filings were approved by U.S. Bankruptcy Court late last week. In addition to the Prudential asset purchase agreement, bankruptcy filings also list the $4 million sale of Coyne’s assets in New Bedford, Mass., and a $22.5 million sale of assets in Buffalo, N.Y.; Cleveland, Ohio; Bristol, Tenn.; Syracuse, N.Y.; York, Pa.; and London, Ky.
Prudential Overall Supply representatives declined to comment on the purchase agreement outlined in bankruptcy filings. Founded in 1932, Prudential is a uniform and textile rental company with 29 locations concentrated in the U.S. Southwest. The company lists three East Coast locations as well as one each in Colorado and Puerto Rico.
Also known as Coyne International Enterprises Corp., Coyne’s South Carolina business filing dates back to early 1998, according to the S.C. Secretary of State’s database.
Coyne Textile Services notified South Carolina of the potential closure and layoff by filing a Worker Adjustment and Retraining Notification (WARN) report with the state earlier this summer. The notification report indicated the event would affect 66 people by the end of October.