business for sale

Unique Opportunity to acquire a thriving Retail Discount Clothing Business, under management, with s

Businesses for Sale

Sale Memorandum

Unique Opportunity to acquire a thriving
Retail Discount Clothing
Business, under management, with superb development potential


Ref.AB074

Location London

Asking Price £ 2,350,000

Confidential offered for sale

Asking price includes:

Turnover potential £2million per annum
6,000 square feet high street location with parking for 10 cars
Well known brand
Very high gross margins of circa 52%
Regular clientele
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA

Business profile:

This unique business was established by the current owner, a well known name within the mens clothing industry, more than fourteen years ago. Since that time it has built an enviable reputation as the mens discount clothing retailer of choice in London.

The company specialises in the sale of mens suits, jackets, trousers, overcoats, raincoats, shirts and ties. It also has a very successful shoe department selling to both men and women.

The sales strategy is to sell quality apparel at discounted prices, to offer the customer excellent value for money, and to thereby generate a loyal clientele and much repeat business.

A very large stock, for example, in excess of four thousand suits, is always available to ensure choice in fabric, style and sizing. Mens suits are stocked from 34” up to 74” chest. Many larger men are very good customers since they have real difficulty in choice and style at these larger sizes.

A new range of boys suits starting at age five through to age fourteen is now being stocked. There is much demand for this product line.

Customer Service

A high level of personal service culture sits at the heart of the business. All staff adopt a ‘we care’ attitude, resulting in a loyal customer base and much repeat business.

Key Strengths

The company’s reputation is sound. It is well known as the discount mens clothing retailer of choice in and around London. Whilst significant business is generated through local customers, many others do travel to the store from across the Greater London area and further afield.

The business generates very high gross margins of circa 52% from a combination of aggressive purchasing and sub contract manufacturing relationships. Frequently, fabric is purchased which is subsequently outsourced to companies specialising, for example, in suit or jacket manufacture. This can result in extremely attractive margins: the retail price being more than four times the cost price. Occasionally distress purchases are made, only of very saleable product.
Key Opportunities

Whilst the business has registered its domain name for protection purposes, no further development of the website has taken place.

The establishment of an attractive website, with full ‘e-commerce’ facilities, would broaden the geographic customer base and significantly increase sales. This can be completed at modest cost, and would ensure real ‘clicks & bricks’ benefits.

The directors are of the opinion that the business can grow very quickly and could form the nucleus of a publicly quoted company.
Premises

The business enjoys a superb high street location of circa 6,000 square feet of retail and storage space. Off street parking for ten cars is also provided. The current lease expires in eight years and the passing rent is circa £100,000 per annum plus business rates.

The business is close to Underground services and buses pass the door.

Business Hours

Current opening hours are as follows:

Monday to Thursday 9.00am to 6.00pm
Friday 9.00am to 2.00pm
Saturday – closed
Sunday 9.00am to 6.00pm.
Advertising and Marketing

To develop brand awareness, the business has used radio advertising on stations including Talksport, LBC and Capital Gold. Circa £60,000 per annum has been committed to this important medium.

Some further advertising has taken place on a reactive basis: the business would significantly benefit from the development of a strategic marketing plan to include all media types e.g. Press – free and paid, Radio and Internet.
Financial profile:
The business is being offered for sale on an ongoing 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 borrowing, high gross margins and has shown consistent strong growth since trading begun. The current turnover is circa £1,250,000 per annum.
Employees

The company employs a very experienced manager and a further five full time members of staff. Some have been with the business since it was founded. In addition, since all alterations are undertaken in-house, two full time alteration tailors are employed.
Support and Training

Unusually, the current owner is prepared to agree to an extended period of training and familiarisation. This will ensure a smooth transition to new ownership and will be subject to separate negotiation.
Reason for Sale

This is a genuine retirement sale. A stage has been reached where the owner wishes to retire and is offering the business for sale not only as an organically expanding going concern but with further significant growth potential.
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

If you are interested in finding out more about this business please:

  1. Click here to generate the Confidentiality agreement with your details
  2. Print the confidentiality agreement
  3. Sign the confidentiality agreement and fax each page of the document to 0870 432 3611
  4. We will contact you and put you in touch with the seller of the business.

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