The dry cleaning industry has been hit hard by the economy in recent years. Last year alone, 4,000 cleaners went out of business.
Sterling Cleaners in Westwood has survived.
“Twenty years ago labor was the majority of the costs,” said Sterling Cleaners owner Michael Geoola.
Recently, the majority of the costs have come from raw materials and utilities, Geoola said.
But now a new wrinkle: the U.S. Commerce Department announced last month it will continue an investigation into wire hangers imported from Vietnam and allegedly sold in the U.S. at less than fair value.
Since many cleaners get their hangers from Vietnam, wholesale prices are expected to jump from 5 cents to 9 cents per hanger. Geoola said he will be forced to raise prices for the first time in three years.
Wire hanger distributor, 3 Hanger Dry Cleaning & Laundry Supplies in Hawthorne, predicts the tariffs will rise much higher from the initial 20 percent.
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“When the Commerce Department sits down reviews again, there’s going to be about a 200 percent tax on these same hangers,” said the company’s vice president Sam Monempour.
One of the companies that asked for the tariffs is the U.S. Hanger Company in Gardena. They could not be reached for comment. Their hangers are made in Los Angeles, according to their website.
Geoola and Monempour maintain that eliminating imports will not increase American jobs because U.S. regulations on making hangers are too stringent.
Monempour believes biodegradable cardboard hangers may be the answer in the future, but not enough people want to make them or use them yet.
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