Star Laundry: from bankruptcy to $150 million in 8 years

News

Star Laundry: from bankruptcy to $150 million in 8 years

Star Laundry: from bankruptcy to $150 million in 8 years

At Join Japan, we love to read about company success stories and be inspired by the fact that nothing is impossible.

At the age of 19, Yakubu Hijazi inherited his father's dry-cleaning and laundry business with revenues of $4 million a year. They were on the verge of collapse in 2011. 8 years later, Forbes estimated Hijazi Star Laundry at $150 million.

"I couldn't sully my father's name. If you're bankrupt, your reputation is ruined," said 27-year-old Yakub Hijazi, president of Star Laundry, a Star Laundry company based in Paterson, New Jersey.

How did Yakub Hijazi succeed?

"When you're 19, nobody listens to you," recalls Yakub Hijazi. Star Laundry was faced with financial shortages, debts and fines from the Federal Occupational Safety and Health Administration. A young entrepreneur had to borrow $300,000 to pay off all his debts. He then closed down a less successful dry-cleaning operation and hired a health and safety specialist to solve the problems in this area.

Star Laundry is located in New Jersey, but Yakub Hijazi focused on Manhattan's large luxury hotels with high and stable occupancy rates. This helped him to protect himself from price pressures and develop efficient laundry delivery routes.

In 2020, Hijazi made it to Forbes' "30 to 30" in manufacturing and industry. Forbes estimates Star Laundry handles laundry for more than 100 hotels in New York City and generates approximately $70 million in revenue per year. In addition, Hijazi has real estate in New Jersey and lingerie production in African Benin. Thus, his annual revenue is about $120 million.

Now Yakub Hijazi is negotiating the sale of Star Laundry. Forbes believes that his company may be worth $150 million or more.

The Join Japan team has been helping various business projects to enter the markets of Europe, Asia, and CIS for 15 years. Nothing is impossible for us, so there are a large number of large international companies among our clients.