Stiff Competition, Rate Hikes Drove Zips Car Wash Into Ch. 11

By Yun Park · April 15, 2025, 5:46 PM EDT

Zips, one of the largest car wash operators in the country, found itself in bankruptcy court earlier this year as the company struggled due to increasing competition, high interest rates, a heavy...

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Bankruptcy Scorecard

Summary

Zips Car Wash LLC and nine affiliates filed for Chapter 11 protection in Texas, citing competition, climbing interest rates and nearly $654 million in funded debt, with a restructuring plan in hand to shave off about $279 million.

Case Number

8:25-bk-80069

Judge

Michelle V. Larson

Venue

U.S. Bankruptcy Court for the Northern District of Texas

Capital Structure

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Related Sections

Case Information

Case Title

Zips Car Wash, LLC

Case Number

8:25-bk-80069

Court

Texas Northern

Nature of Suit

Date Filed

February 05, 2025

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