close up play room closet behind, utility room. open it like this to make laundry closet at the back door. Enclose the water heater. use space where w/d are now at right of door as a little built in seat for bags & coat hooks over it.
PAX wardrobes - Even behind closed doors, you can avoid closet clutter by making sure you have the right type of organization for your things. Closet layout floor to ceiling wall mounted wardrobe storage