Consumer

Trade Dispute Hangs Cleaners Out To Dry

DALLAS (CBS 11 News) ― The ubiquitous wire hanger has some dry cleaners hanging by a thread.

Like most cleaners, Charlie Patel of Lakeside Cleaners uses hangers made in China. "They were really, really cheap, and that's not the case anymore," he said.

Those low-cost Chinese hangers forced the closure of every American hanger company except one. Last month, the U.S. Department of Commerce imposed tariffs on Chinese hangers after that company complained. Patel felt the change immediately.

"Just this month we've seen a 30 to 40 percent increase on our hangers that are from China," said Patel. He said he will pay $15 - $16,000 more than usual this year for hangers.

"We're going to have to basically lay off an employee, and my wife and I are going to have to roll up our sleeves and pick up that work," he said.

He also knows he will eventually have to pass the costs on to the customer. "Eventually I'm going to have no choice but to go up," he said.

Experts say the price hike will be across the board.

"If you're taking your clothes to a dry cleaners, and you want him to stay in business, he's going to have to raise the price," said Hal Zelanzy, Fabriclean Supply Company.

With rising fuel, electricity and production costs, Patel estimates that a quarter of all cleaners will close their doors by the end of the year.

"This is just one more thing that's gotten thrown in there to see how many of us can stay in business," he said.

There is one way you can help keep your dry cleaning bill low. Take your wire hangers back to your cleaners so that they can be recycled.

Some cleaners, such as Kenny's, offer discounts to those who recycle hangers. They say that simple act could be the cleaners' saving grace.

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