SAN FRANCISCO — The court-appointed trustee for Lohrey Enterprises, doing business as West Coast Linen, reports that Angelica Textile Services has offered $4.1 million for the bankrupt commercial laundry company.
A Friday hearing in U.S. Bankruptcy Court, Northern District of California, has been scheduled for approval of the sale.
Angelica’s offer is for West Coast Linen’s Gilroy, Calif., plant; the water and sewer rights associated with the property; and the commercial laundry equipment. Real estate includes approximately 4.6 acres and more than 100,000 square feet of commercial buildings.
Richard Schwalbe, the court-appointed trustee, announced the pending sale in hopes that a higher bid would come in before the Friday hearing.
“The business has been marketed widely and many potential buyers declined to make offers for the business because of the deteriorating condition of the real estate,” reads a motion to sell the property filed on Dec. 22.
If the sale to Angelica doesn’t go through, it’s likely that the equipment and related commercial laundry assets “will have to be sold piece-meal at a seriously reduced price,” the motion continues.
West Coast Linen filed for Chapter 7 bankruptcy protection in October 2008 and closed the Gilroy plant a month later.