Zips Car Wash files for bankruptcy to tackle $279 million debt and restructure operations

Zips Car Wash, a major brand with 260 locations, has filed for bankruptcy, aiming to reduce $279 million in debt. The company, which washes about 24 million cars annually, is struggling with $654 million in total debt and only $1 million in cash. To aid its restructuring, Zips has secured a $30 million loan from lenders. The company has already sold locations in Orlando and St. Louis, raising about $78 million. Zips expects to complete its Chapter 11 restructuring in approximately three months. Founded in 2004, Zips has expanded rapidly but now faces challenges from rising costs and competition. The company employs 1,800 people across 23 states, primarily in the southeastern U.S.