Birmingham laundry set to clean up on expansion after £2.2m funding deal

A BIRMINGHAM-based commercial laundry firm is set to create 30 new jobs after securing a seven figure funding deal.

Zip Textiles has been backed by a £2.2m financial package from Lloyds Bank help it significantly invest in its infrastructure.

The firm provides a full range of bed, table and kitchen linen laundry services, together with chefs’ wear and other apparel for the hotel, restaurant and catering industries.

To help increase the business’ capacity, Lloyds Bank Commercial Finance supplied an asset finance facility which has allowed the firm to purchase state-of-the-art new laundry equipment, which will enable it to be 30% more efficient.

The increase in productivity will allow the firm to expand its operation area from its current 60-mile radius of Birmingham to a wider 90-mile radius. The extra jobs will take the company’s workforce to 190.

The investment in the firm’s infrastructure comes after it expanded its premises on Redfern Park Way in Tyseley, adding 20,000 sq ft of space to its existing 32,000 sq ft unit.

The investment is in addition to an ongoing continuing term loan of £1.8m, which has helped the company with working capital to support its growth. The company hopes to achieve an annual turnover of £14m by 2019.

Tariq Mahmood, Director of Zip Textiles, said: “We’re pleased to have confirmed our recent expansion following the financial package provided by Lloyds Bank Commercial Finance. This is an investment which will help us to significantly increase our capacity and broaden the area in which we operate, which in turn will make our business more profitable.

“It’s great to have helped to boost local employment with the creation of around up to 30 new jobs in the coming months. This is a fundamental part of our growth plan, and we look forward to continuing to work with Lloyds Bank to realise our ambitions.”

Lauro Rodi, regional manager at from Lloyds Bank Commercial Finance, said: “The hospitality industry is growing rapidly as the economic recovery continues, and Zip Textiles is well placed to benefit from the thriving nature of the sector.

“Asset finance is the ideal way for businesses to invest in the infrastructure of their businesses without affecting their cashflow, and we were pleased to work with Zip Textiles to enable this important expansion of their business.”

Kevin Roberts from Lloyds Bank Commercial Banking, said: “Zip Textiles is a great example of a firm which is helping to drive the economic recovery, and part of our commitment to help businesses grow.”