Zips Car Wash Bankruptcy Draws Scrutiny from Union Investors

An open letter released today by UNITE HERE Local 11 is calling on investors with Atlantic Street Capital to address concerns surrounding the recent bankruptcy filing of Zips Car Wash.

The letter, dated 2025-11-01, directly addresses the private equity firm’s investors, alleging a pattern of prioritizing profits over the well-being of Zips Car Wash employees. UNITE HERE Local 11 represents workers at several Zips Car Wash locations and has been actively involved in organizing efforts. According to the union, the bankruptcy filing threatens the jobs and benefits of hundreds of car wash employees across California and Arizona.

“Atlantic Street Capital’s business model relies on squeezing every last penny out of workers and customers, and now those chickens have come home to roost,” stated a spokesperson for UNITE HERE Local 11. The union claims the company loaded Zips Car Wash with debt following its acquisition in 2021, contributing to the current financial difficulties. This bankruptcy follows a trend of increasing bankruptcies among companies owned by private equity firms, raising questions about their financial practices.

The union is urging investors to demand accountability from Atlantic Street Capital and to support a restructuring plan that protects workers’ jobs, wages, and benefits. Zips Car Wash, headquartered in Bakersfield, California, operates over 150 locations. The bankruptcy filing could impact car wash services and employment opportunities in the region. More information about the union’s efforts can be found on their official website.

UNITE HERE Local 11 officials stated they will continue to monitor the bankruptcy proceedings and advocate for the rights of Zips Car Wash employees.