Five Years Later

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The day New York State shut down due to COVID-19 was the day my business saw a staggering 90% drop in revenue—five years ago. At the beginning of 2020, I was operating a chain of dry cleaners and a textile restoration company that generated $10 million in recurring revenue. However, after the shutdown, demand for dry cleaning evaporated, and no one wanted strangers in their homes to restore fire- or smoke-damaged goods.

Within days of the closure, then-Governor Andrew Cuomo designated dry cleaners as essential businesses, forcing us to remain open.

Chaos is the only word that captures the feeling of that time. Nine dry cleaning locations, a restoration service territory covering most of New York State, six lease agreements, three mortgages, and over 100 employees—yet, clients had disappeared overnight. Conversely, charitable requests flooded in from frontline workers—firefighters, nurses, police officers—needing garments cleaned in a way that would prevent the spread of COVID-19. They needed it fast and cheap. Meanwhile, government mandates required special documentation just to be on the roads.

Navigating the Crisis

Decisions had to be made as swiftly as the government changed its rules and regulations.

Workforce Adjustments

With virtually no clients, the need for staff diminished. I made the painful decision to furlough all but seven employees—a heartbreaking yet necessary move to ensure the company’s survival. These conversations were tough but essential, ensuring employees knew their options. I also cut my own salary to cover only my fixed personal expenses.

The eight of us left standing began anew. Every remaining employee—and those rehired one by one—underwent extensive cross-training. Every aspect of the business still required attention. Our HR manager took on finance roles and fielded client calls, while our operations manager sewed damaged garments and cleaned restrooms. Fresh perspectives on existing roles led to unexpected efficiencies across the company.

Downsizing the Retail Model

We quickly opened discussions with landlords. Though initially resistant, over time, all agreed to let us exit our leases, allowing us to close four locations. This pivotal move forced us to rethink our retail model.

Rethinking the Retail Model

We pivoted to a home pickup and delivery service, eliminating the need for in-person retail interactions. While this service had existed since 2006, its adoption had been minimal. Our team spent countless hours personally calling every client to explain the new system. Though revenue was still down over 80%, we managed to clean garments for Zoom calls and those venturing out for essential work.

Further Adaptation and Innovation

With no clear end in sight, we doubled down on marketing. We developed graphics outlining new regulations—six-foot distancing, mask usage, and garment care protocols. We installed plexiglass barriers in all locations and rehired only employees who felt comfortable in this new environment.  And we continued the calls to every client to ensure they knew services were available, and it was a no-interaction model.

Financial Survival

Like countless other businesses, we needed financial support. We leveraged every available resource:

  • EIDL (Economic Injury Disaster Loan): Used to pay landlords, business loan obligations, and accounts payable.
  • PPP (Paycheck Protection Program): Used to pay current employees and rehire staff.
  • Financial Restructuring: We scrutinized every line item on our P&L and balance sheet. No expense went unchecked, leading to stronger vendor relationships and cost-saving renegotiations with suppliers, banks, insurers, and service providers.

The Silver Lining

In retrospect, the shutdown provided a rare opportunity to rebuild from the ground up:

  • Vendor Relationships: Closer analysis led to better contracts and savings.
  • Operational Efficiency: Process improvements streamlined production and reduced labor needs.
  • Marketing Clarity: A more unified branding strategy emerged.
  • Financial Processes: Daily reconciliations became faster and required fewer resources.
  • Human Resources: The success of cross-training revolutionized our hiring, training, and employee development practices.

The pandemic forced significant changes in every facet of our organization, ultimately making us a stronger, more efficient, and more profitable company. That level of transformation is a once-in-a-lifetime opportunity—and we refused to waste it.  What was never lost during those tumultuous times was the singular focus that the business must sustain.  The business needed to be ready when the pandemic passed and our employees and clients were ready to come back.  It was, and it still is.

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Catherine Schrader McCann
Catherine Schrader McCann
Catherine Schrader McCann is a highly respected CEO, entrepreneur, and board director with over 30 years of experience leading business growth across diverse industries. As co-founder and CEO of Best Companies, she transformed a small dry-cleaning operation into a $10M multi-division enterprise encompassing garment care, logistics, bridal gown preservation, and disaster restoration. Her leadership through the COVID-19 pandemic, marked by resilience and strategic vision, solidified her reputation as a dynamic operator. Catherine also scaled Best Restoration into a $6M disaster recovery business and launched a last-mile logistics division serving Amazon. Beyond Best Companies, she co-founded the McNulty Veteran Business Center, supporting veterans in entrepreneurship, and served as a consultant for America’s Best Cleaners, driving excellence across 20+ businesses. Her corporate foundation includes executive roles at AT&T, where she led global sales and finance operations totaling $2B in annual revenue. A committed community leader, she serves on multiple boards and is active in professional networks like the Women Presidents Organization and the Forum for Executive Women. With a BA in Economics from Wilfrid Laurier University, Catherine is known for her strategic planning, entrepreneurial drive, and unwavering commitment to innovation, sustainability, and inclusive leadership. https://56252a190e.nxcli.io/executive-biography/catherine-schrader-mccann-visionary-ceo-and-entrepreneurial-leader/