Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • June 2007 (Revised March 2008)
  • Case
  • HBS Case Collection

Zoots - Financing Growth (A)

By: Michael J. Roberts, William A. Sahlman and Todd Krasnow
  • Format:Print
  • | Pages:28
ShareBar

Abstract

Traces the genesis and founding of Zoots, the largest chain of dry cleaning establishments in the U.S. Founded by some of the founders of the very successful Staples chain, the company raises a very large amount of capital without fully proving its business model, and by 2006 is in need of yet more funding. Pushes students to dissect the business model and current operations -- and their financial performance -- and figure out what went wrong initially, if the business model and operations are now on solid footing, and, assuming capital can be raised, whether it is better to take the "bird in the hand" of significant capital at an admittedly disappointing valuation, or wait for a strategic investor who would pay a higher price but will need significantly more time to complete due diligence.

Keywords

Business Startups; Decision Choices and Conditions; Venture Capital; Financial Strategy; Investment Return; Growth and Development Strategy; Valuation; United States

Citation

Roberts, Michael J., William A. Sahlman, and Todd Krasnow. "Zoots - Financing Growth (A)." Harvard Business School Case 807-139, June 2007. (Revised March 2008.)
  • Educators
  • Purchase

About The Author

William A. Sahlman

Entrepreneurial Management
→More Publications

More from the Authors

    • May 2022
    • Faculty Research

    Deborah Quazzo at GSV Ventures

    By: William A. Sahlman, Michael D. Smith and Nicole Tempest Keller
    • November 2021 (Revised May 2022)
    • Faculty Research

    QuantumScape's Mission to Revolutionize Energy Storage for a Sustainable Future

    By: William A. Sahlman, Allison M. Ciechanover and Jeff Huizinga
    • October 2021 (Revised January 2022)
    • Faculty Research

    Chia Network: Reimagining Programmable Money

    By: William A. Sahlman and George Gonzalez
More from the Authors
  • Deborah Quazzo at GSV Ventures By: William A. Sahlman, Michael D. Smith and Nicole Tempest Keller
  • QuantumScape's Mission to Revolutionize Energy Storage for a Sustainable Future By: William A. Sahlman, Allison M. Ciechanover and Jeff Huizinga
  • Chia Network: Reimagining Programmable Money By: William A. Sahlman and George Gonzalez
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College