• The Boston Globe, Thursday, May 15, 2008 10:30 AM

Zoots, a high-concept dry-cleaning chain launched by Staples founder Tom Stemberg in 1998, has collapsed, closing nine stores in Massachusetts and New Hampshire and shuttering a plant in Connecticut. Designed to be at the cutting edge of all things dry cleaning--24/7 service and a Web site where customers could check the status of orders and schedule home deliveries--the concept reportedly cost investors more than $150 million.

At its height early last year, Zoots had about 75 stores and roughly 115 delivery routes across eight states, serving more than 300,000 customers. Now, the $65 million company is in pieces, with stores and delivery routes being sold off to rivals. Two former executives bought 17 local stores and the rights to use the Zoots name.

Stemberg brought many of the principles that had made Staples a smashing success: make it easy for customers, make it cheaper, and make it efficient. But dry cleaning analysts say Zoots faced an uphill battle from the start, trying to turn a mom-and-pop industry with razor-thin profit margins on its head.

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