What happens to customers’ garments when a dry cleaner is sold?
Garments in the shop stay in the shop, so the seller and buyer should agree in writing how to handle orders in process, prepaid tickets, long-unclaimed items, open damage or loss claims and alterations. Each customer should be able to collect their clothes without noticing the change of owner.
On closing day a dry cleaner is full of other people’s property. Customers left those clothes with the old owner and expect to pick them up from whoever is behind the counter. Seller and buyer should settle who answers for each kind of garment before the day arrives, and write it down. Surprises at the counter cost goodwill that a buyer needs.
Orders in process and prepaid tickets
Take a count on closing day of every garment in the shop and every ticket outstanding. Agree who finishes the cleaning in progress and who bears the cost. For tickets that customers have already paid for, decide who honours them. Credits and prepayments are similar to gift cards on a sale, so read that page, confirm the treatment with your lawyer and settle the point in the agreement.
Unclaimed garments
Most shops hold items nobody has collected in a long time. Do not simply give them away, sell them or throw them out. Ask your lawyer what the rules on abandoned goods allow, how a customer should be notified, and what the ticket terms say. Agree who keeps the list, and who contacts customers.
Open claims and alterations
Ask the seller for a written list of damage and loss claims, with their status. Agree who pays for claims that arose before closing, and who handles a complaint that surfaces later about a garment cleaned under the old owner. Alterations work in progress needs the same treatment: who finishes it, at whose price, and with whose seamstress or tailor.
Telling customers
Plan a short, clear notice in the shop. Keep the ticket format, the hours and the staff steady in the first weeks. Keep a copy of the closing inventory for both sides, and ask your lawyer to review what you have agreed.
Related reading
15 pages on the same subject, grouped by topic.
Selling
- GuideSelling a laundromat or dry-cleaning business in Canada
- Expert answerWhat counts as cleaning up a business before a sale?
- Expert answerWhat is a realistic timeline to get sale-ready?
- Expert answerHow do I clean up my financial records before selling?
- Expert answerHow do I sell my business to a friend or partner?
- Expert answerWhere should I list my laundromat for sale?
Legal
Buying
- Expert answerCan a licence be transferred to a numbered company instead of me personally?
- Expert answerWhat should be on a checklist for buying a dry cleaner?
- Expert answerHow do I check a dry cleaner’s sales when customers pay at the counter?
- Expert answerHow can I tell if a dry cleaner’s sales are shrinking before I buy?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to Find the Right Buyer for Your Business
- 02Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 03Canada Revenue AgencyGovernmentSelling a business
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