The drycleaning and textile rental divisions will be merged into a single textile services division to be headed by Chris Sander, who has successfully led the group’s textile rental division. Sander joined Johnson Service Group in 1984 and was appointed to the board in 2008.
Paul Ogle, the managing director of the drycleaning division, will step down from the board of Johnson Service Group but will continue as managing director of the drycleaning business within the enlarged division.
The restructuring will allow the group to benefit from a unified branding strategy, significant cost savings and greater co-operation on sales opportunities, said executive chairman John Talbot. The strategic review had concluded that the group has a viable, profitable and resilient core drycleaning business.
Johnson currently has 460 drycleaning shops and the group plans to implement the closures by the end of the year. There will also be a corresponding reduction in back office and field teams and a reduced requirement for the warehousing and distribution of consumables.
The board anticipates that the actions will provide the basis for a stable platform with increasing profitability expected in future years.
