Local dry-cleaners have so far only seen "slight'' increases in business following the closure of Hamilton Valcleaners and Paget Drycleaners by owner Stephen Thomson.

And talks are underway with several prospective buyers for the two businesses,which were closed by Mr. Thomson last month in the aftermath of a contentious labour dispute over union recognition.

Yesterday, Blue Ribbon Cleaners owner Eduard Guntl said: "We've had a slight increase in business since the closures. I am sure everybody did see an increase in business.

"I would rather the businesses (Hamilton Valcleaners and Paget Drycleaners) continue. I am in favour of competition. Customers have lost one alternative.'' Blue Ribbon has locations on Reid Street and Bermudiana Road in Hamilton and in Warwick.

Mr. Guntl said the fate of Hamilton Valcleaners and Paget Drycleaners will likely have short and long term effects on the dry-cleaning sector.

Businesses will initially see more volume, but if the closed businesses re-open, volume could return to prior levels. If they close permanently, existing dry cleaners may have to invest in more equipment and staff to handle more volume, he said.

Growing too fast can be dangerous to a business because it can lower quality, he added.

On the controversy surrounding the two dry-cleaners, Mr. Guntl said it was a big shock.

"When we opened in 1990, we had a business plan, we never thought we'd see this from the competition.'' Sandys Clean-R-Ama owner Walter Bailey said there has been a slight increase in business but noted volume normally picked up around this time of year. He also said that it may take more time for business from the two closed dry-cleaners to affect his West End operation.

Quality Drycleaners & Shirt Launderers managing director Thomas (Ted) Powell said there had been a "moderate increase'' in volume at the Reid Street business.

"Quality Dry Cleaners has the equipment to accept additional business,'' he added.

He also said that the company's plans begun late last year to open a Washington Mall location have not been greatly affected by the closures.

Quality is aiming to open its new location later this month, he said.

Coral Cleaners/Touch of Class Dry Cleaners general manager Ronald Smith said: "We've seen a steady increase every day'' since the closures.

The remaining dry cleaners can absorb more volume without problem, he added.

Coral Cleaners is located on Victoria Street, Hamilton while Touch of Class is located in St. George's.

He said the controversy surrounding Hamilton Valcleaners and Paget Drycleaners will be a big hurdle for a new owner to overcome.

"When you close a business under that publicity, restarting is difficult.'' Despite the controversy, Mr. Thomson said yesterday that there are four active offers to buy the businesses.

"We are serious about selling,'' he said, adding that moves to start purchase talks were swift.

Prospective buyers contacted Mr. Thomson the day after it was announced the two dry-cleaners were for sale and negotiations are continuing.

Cox & Wilkinson partner Kim White is handling the sale of the two local limited liability companies, DT&T Ltd., trading as Hamilton Valcleaners, and TT&D Ltd. trading as Paget Drycleaners.

Mr. Thomson, his father William Thomson, and Stephen Dunkley, vice president of Dunkley & Pioneer Dairies Ltd., own DT&T and TT&D. The three businessmen also own TD&T Ltd., trading as Just Shirts Launderers & Drycleaners, and Mailboxes Unlimited Ltd.

Three weeks after the closures, Mr. Thomson called the matter "sad''.

"It's sad for the employees,'' he said. "It's unfortunate for us. It's unfortunate for the union. It's unfortunate for Bermuda. It's unfortunate more couldn't have been done for all the parties.'' Keeping the two dry-cleaners open would have meant their "slow death'', while closing them was a "quick death''.

"It was expensive to close but more expensive to remain open.'' Asked when news of a sale might be announced, he said: "It's in everybody's interest to get them sold as quickly as possible, so that the new owner can keep some of the goodwill.'' Customers of the two shops have one more week to collect their dry-cleaning.