business for sale

Well established, prominently located luggage and accessories retailer

Businesses for Sale

Sale Memorandum

Well established, prominently located luggage and accessories retailer


Ref.AB050

Location Hertfordshire

Asking Price £180,000

Confidential offered for sale


Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA
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Asking Price Includes

Successful range of products and brands
Highly competitive offering in the area
Part of larger regional chain of shops
Sales of circa £540,000 per annum
Excellent opportunity to grow
4 years of successful trading
Trusted and respected name
Modern leasehold property
Established reputation
High profile location
1,800 sq ft premises
EPOS system
Goodwill

Business profile:

This retail business outlet was founded in 2002 by Vendor and has become a well known and respected enterprise with a reputation for the quality and variety of its products, brands and service. It is one outlet in a larger chain which is available if the larger opportunity is preferred.

The business enjoys a prime position in one of Hertfordshire’s busiest shopping centres in a newly refurbished unit and one of the busiest town areas and benefits from its unique offering in the centre for high quality branded luggage and accessories aimed at the higher value conscious but not premium consumer.

The business has been established in the area for 6 years in current ownership and as such is considered a part of the centre’s trading community. The vendor has been responsible for the success of the business and can offer considerable advice and information concerning all aspects trading in the region.


Customer Service

The business considers simply that happy customers come back and on that simple basis has maintained levels of product and service quality intended to best guarantee that happiness. The results of this commitment are evident in the degree of return custom and the choice of this business by new customers over competitors.
All products are covered by manufacturer’s guarantees and the business offers customers a money back guarantee on all purchases if not completely satisfied.

Key strengths

The quality of the unit’s location and position cannot be overstated since its prominence guarantees access, visibility and footfall, the quality of the showroom plays no less a part in meeting customer expectation as created by the large and inviting window displays, this combined with more than adequate customer parking facilities as an integral part of the centre provides the premises with an ideal combination of benefits.
The business is well established and profitable, with a strong and growing customer base, retaining a high level of return custom; a great many of whom having done so for many years. The business also enjoys strong purchasing power with its suppliers allowing for the advantage in either better margins or highly competitive promotions.

Growth and Expansion

The current market for this business’s products is stable and is forecast in the near and longer term for significant growth. The business is well positioned to take maximum advantage of this growth as it occurs.

Key opportunities

This is an outstanding opportunity to build on the existing business levels and long term contracts and customer base of this company. With a strong demand for this business’s products, combined with a capacity to increase turnover, a new owner contributing fresh ideas will have every advantage of building on an excellent platform.
This business maintains an extensive base of satisfied customers, who appreciate the company’s superior products and service. There are many excellent avenues for growth, especially with continued investment in marketing including radio and press advertising and successful internet opportunities, where the business is seeing clear benefits.
Other opportunities include Sunday trading, the addition of new product lines and perhaps with the expected growth provided by the degree of new housing development in this area.

Among the types of products available in store are:

Luggage

Wheeled Luggage
Carry-Ons
Garment Bags
Luggage Sets

Backpacks & Duffles

Daypacks
Wheeled Backpacks
Wheeled Duffles
Duffles

Handbags

Leather Handbags Non-Leather

Laptop & Briefcases
Laptop Cases
Leather Briefcases
Wheeled Briefcases

Attache Cases

Travel Accessories
Packing Accessories
Toiletry Kits
Security
Travel Wallets

Business Accessories
Letter Pads / Portfolios
Laptop Sleeves
Wallets
Premises

The business is located in an easily accessible area in Hertfordshire and operates from a circa 1,800 square feet area including showroom, storage, and toilet facilities, kitchen and administration.
Competition

This business has been very well established in the area for 4 years and is regarded as one of the leading retailers of floor coverings in the region, maintaining a strong share of the market over those many years.

Technology

Administrative systems have been implemented to provide the required technology for a modern and efficient business.

Advertising and marketing

The business is committed to marketing and allocates a significant budget annually to its use and successfully uses local and regional advertising including press and radio. There are excellent opportunities to increase this and to continue investment in its website to market the business more aggressively and to significantly increase turnover.
A high proportion of the business's revenue has been due to its excellent reputation for quality and service and strong word of mouth recommendation.
Financial profile:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business is financially stable with no borrowings, low overheads, positive cash flow, good gross and net profits and has shown consistent growth over 4 years of trading.
Sales revenue is circa £540,000 per annum and the vendor feels that with continued committed investment in marketing and the expected increase in market demand the business could dramatically increase its revenues.
Employees

The business employs 2 full time staff and 3 part time staff including managerial, accounting and sales, who together with the vendor are responsible for the day to day operations.
Support and training

The current owner will provide all necessary training and all relevant contacts to allow continuity of trading.
Reason for sale

After many years of successful trading the business is for sale as a result of the vendor’s wish to pursue other areas of business
Turner Butler Disclosure Statement:

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner & Co (GB) Limited registered in England and Wales under company no. 2477988 of registered office Savoy House Savoy Circus London W3 7DA, trading as Turner Butler © Shaun Sweeney October 2006

Next steps

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