Tuesday, January 18

Jeff, the king of laundries, multiplies by three his debts with credit institutions

Jeff, the laundry franchise firm based in Valencia, has multiplied by three its debts with credit institutions, according to the accounts corresponding to the year 2020 deposited in the Mercantile Registry. If in 2019 it declared debts of 775,526 euros, the year in which the health crisis due to Covid-19 began, the company registered debts of 2.3 million euros. It also declares debts with public administrations of 1.2 million euros (compared to 423,084 euros the previous year).

The company has expanded its activity, through subsidiaries, to Europe, Asia, Africa and Latin America, the main market of the group that contributes 49% of total sales (compared to 36% in Europe). The firm has registered capital increases of 12.2 million euros and its turnover has fallen to 4.5 million euros compared to 16 million the previous year. The firm also registers a negative result after taxes of 18.4 million (1.6 in 2019), which is justified by the “strong dedication of both technological and business resources to the opening of new markets.”

Of course, despite the pandemic, the company founded by Eloi Gómez has had rapid growth with the sale of 451 franchises. For this year, the firm had set itself the objective of penetrating new markets in North America and Europe, with a forecast of a 70% growth in sales through a combination of entry into new markets and new lines of business, “as indicated The management report Jeff (formerly known as Mr. Jeff) thus intends to sell 2,500 new franchises this year.

The firm “develops its activity mainly within the sector of emerging companies, with a high technological component, to cover a need of society in a new way”. During the months of April and May 2020, in full confinement, the company signed loans with financial institutions for a total amount of 3.7 million euros, to reinforce its liquidity.

The firm went, through online marketing campaigns, from industrial laundries to a kind of express wash model that collects clothes at the customer’s home and returns them clean and ironed. However, as reported by this newspaper, franchises around the world have filed lawsuits against the company, especially in Mexico and Bolivia.

The Examining Court number 3 of Valencia admitted to processing a complaint against the company Mr. Jeff España SLU and has summoned, as defendant, Eloi Gómez, its founder, and other attorneys, whom it is investigating for an alleged crime of fraud supposedly committed against more than a dozen franchisees in Spain. There are 11 complaints of Spanish nationality.

The Platform of Affected by Mr Jeff and the Spanish Franchisee Association (AEDEF) explained in a statement that the procedure opened in Valencia joins others opened against the company in Mexico, Colombia, Chile, Bolivia, Portugal. However, company sources denied “any type of alleged irregularity” and indicated that “these are serious accusations and without any basis.”