http://www.tranzon.com/DG569
Was someone on this forum once associated with the Metro Washes in Birmingham, AL?
Was someone on this forum once associated with the Metro Washes in Birmingham, AL?
Car Wash Forum
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Alabama washes at auction
- Thread starter Ric
- Start date
I.B. Washincars
Car Washer Emeritus
Yes, the former owner of these washes is a regular poster here. He changed his handle some time back and doesn't clearly identify himself so I'm going to assume that he may not want to be identified. I'm probably reading too much into his name change, but I'll let him out himself.
Whale of a Wash
5 Washes 36Bays 2Vectors
Maybe time to buy them back again at a bargain price. I know that some people make more money buying and selling businesses than owning them.
I built them and operated them for several years. An operator came along and made me a decent offer and I sold them in the Fall of 2005. They were re-sold I think in 2008 to a third party, who went belly-up pretty quickly.
The SS/IBAs were good producers at the time I owned them. The tunnel rehab was a flop and I considered myself lucky to recover my investment. I managed them briefly for a bank a couple of years ago after they foreclosed. I guess I was considered a bad choice for running them, so my contract was cancelled and the job was given to a real estate appraiser who lived about three hours away. He came down twice a week and pulled the money but I don't think he even owned a screwdriver. So you guys can imagine how well that worked out. The washes continued their downward spiral.
When I did manage them they were grossing about 25% of what they were when I originally owned them. Three of the four have express washes within one half mile of them. They may have some upside potential but they have been mismanaged so long and have so much competition that it will be a tough, long-term turnaround, and they will never make what they did "back in the day".
If any forum regular needs info, just PM me.
The SS/IBAs were good producers at the time I owned them. The tunnel rehab was a flop and I considered myself lucky to recover my investment. I managed them briefly for a bank a couple of years ago after they foreclosed. I guess I was considered a bad choice for running them, so my contract was cancelled and the job was given to a real estate appraiser who lived about three hours away. He came down twice a week and pulled the money but I don't think he even owned a screwdriver. So you guys can imagine how well that worked out. The washes continued their downward spiral.
When I did manage them they were grossing about 25% of what they were when I originally owned them. Three of the four have express washes within one half mile of them. They may have some upside potential but they have been mismanaged so long and have so much competition that it will be a tough, long-term turnaround, and they will never make what they did "back in the day".
If any forum regular needs info, just PM me.
I've had a couple of inquiries about the auction results and thought some of you might be interested. There was a total of five people bidding. Only one other Bham area IBA/SS operator bothered to show up.
The high bid at the auction was 125K per location for the IBA/SS. The tunnel's equipment was removed and the building/real estate sold for 25K. That's the total package for 400K. The four wash package sold for four million in 2007. I think you could say the auctioneers were a bit "disappointed". One walked up to me after the auction and asked "what just happened?"
A local express owner bought them. Other local operators who found out how much they went for expressed a little amazement at the low prices, but still weren't very interested in those washes, even at those prices. Most seem more worried about keeping their existing operations viable and didn't want to expend the capital, time or energy to rehab these. If the buyer is patient and has deep pockets to feed them for a year he should make a reasonable return, but I think he will have his hands full for a while.
They results are not absolute, but the auctioneer said he thinks the bank might take it. I think the bank has another week to consider other offers.
The high bid at the auction was 125K per location for the IBA/SS. The tunnel's equipment was removed and the building/real estate sold for 25K. That's the total package for 400K. The four wash package sold for four million in 2007. I think you could say the auctioneers were a bit "disappointed". One walked up to me after the auction and asked "what just happened?"
A local express owner bought them. Other local operators who found out how much they went for expressed a little amazement at the low prices, but still weren't very interested in those washes, even at those prices. Most seem more worried about keeping their existing operations viable and didn't want to expend the capital, time or energy to rehab these. If the buyer is patient and has deep pockets to feed them for a year he should make a reasonable return, but I think he will have his hands full for a while.
They results are not absolute, but the auctioneer said he thinks the bank might take it. I think the bank has another week to consider other offers.