Zips Car Wash, LLC

Zips Car Wash emerged from Chapter 11 on April 30, 2025, and its main case remains in post-confirmation claims administration. The reorganized debtors’ second omnibus claims objection Dkt. 737 is set for a December 2, 2026 hearing; the court has extended the claims objection deadline to April 20, 2027.

Zips Car Wash’s Chapter 11 plan became effective on April 30, 2025, following confirmation on April 18, as reported in the notice of effectiveness Dkt. 417. The court closed nine subsidiary cases in October 2025 and directed that remaining matters be administered in Zips’s main case, which remained open under the final decree for the subsidiaries Dkt. 613.

Zips and its affiliates filed for Chapter 11 on February 5, 2025, after their senior secured term loans matured. The first-day declaration Dkt. 14 reported approximately $653.9 million in long-term funded debt and approximately $1 million in cash at filing. Rising interest costs, inflation, competition, and membership churn strained the express car wash operator’s finances.

The confirmed plan Dkt. 365 provided for term lenders to receive new equity and $375 million in new term loans, alongside a $15 million revolving facility. It also established a general unsecured creditors’ trust funded with $2.5 million in cash, a capped share of proceeds from specified real estate sales, and certain unspent professional fee budget amounts. Existing preferred and common equity was canceled without distribution.

Claims administration continues. In their second omnibus claims objection Dkt. 737, the reorganized debtors seek to disallow, expunge, or reclassify 19 claims; a hearing is noticed for December 2, 2026. The November 9 order Dkt. 744 extended the administrative and general claims objection deadlines through April 20, 2027.