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Published July 21, 2025
Vestis shareholders thought they were going to cleanup after the uniform rental company announced new growth plans. But when investors learned the dirty truth and that executives knew those initiatives were bound to fail, it was investors who got taken to the cleaners. The stock plunged 37% and now investors are suing.
Vestis is an Aramark spin-off which supplies uniforms and workplace products. In 2024, company execs boasted about plans to improve sales, customer experiences, and customer retention. They said these programs would lead to major revenue gains and plush margins. But the lawsuit says behind-the-scenes, Vestis execs knew that was all bluster and that the company was plagued with massive problems.
The dirty laundry got aired in May 2025, when Vestis withdrew its guidance, an $8 million revenue drop, and a customer exodus. Investors dumped their shares and the stock plummeted.
Now more investors are joining the lawsuit.