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Is ZIPS Car Wash Owned by Private Equity?

Not anymore — ZIPS Car Wash was owned by Atlantic Street Capital, which acquired it in 2020, but the firm has since exited. The effects of that ownership can linger.

FORMERLY PE OWNED

ZIPS Car Wash

Includes ZIPS

Car Wash · Plano, TX

PE Firm
Atlantic Street Capital
Year Acquired
2020

PE turned a regional car wash chain into 260 locations, then drowned it in $654 million of debt.

What Happened

  1. Atlantic Street Capital acquired a majority stake in ZIPS Car Wash in 2020, then bought out remaining equity in 2022
  2. Loaded the company with $654 million in debt while nearly doubling revenue to $345 million through aggressive acquisitions
  3. Interest costs exploded to $93 million a year by 2023, and ZIPS filed for Chapter 11 bankruptcy in February 2025

The Damage Done

  • Around 30 ZIPS locations shut down, shrinking the chain from 260 washes to 230
  • Prepaid Unlimited Wash Club memberships kept working through the bankruptcy

Sources

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What people ask

Is ZIPS Car Wash owned by private equity?

Not anymore. ZIPS Car Wash was formerly owned by Atlantic Street Capital starting in 2020, but the firm has since exited. The effects of PE ownership often linger.

What happened to ZIPS Car Wash after the acquisition?

Around 30 ZIPS locations shut down, shrinking the chain from 260 washes to 230 Prepaid Unlimited Wash Club memberships kept working through the bankruptcy

Who owns ZIPS Car Wash?

ZIPS Car Wash is owned by Atlantic Street Capital, which acquired it in 2020.

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