business for sale

Successful, Established High Street Fashion Chain Store Currently five outlet stores

Businesses for Sale

Sale Memorandum

Successful, Established High Street Fashion Chain Store Currently five outlet stores


Ref.AB053

Location London

Asking Price £ 3,000,000

Confidential offered for sale

Asking price includes:

Less than 50% of turnover is by credit card
Large cash percentage
Huge scope for further development

Great fashion at competitive prices

Prominent Trading positions

Turnover Circa £3.6Million

Warehouse facility
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 fashion retail business is a large well-established and successful family business that has been in the fashion business for many years and has grown from strength to strength to become a competitive force in the high street fashion market. The company retails ladies fashion clothing split approximately 60% teenage market, 20% adult and between 15-20% children’s wear. Other fashion essentials include shoes, handbags and accessories.

The vendor has a vast amount of knowledge and understanding of the market, having learnt from his parents and has progressed the company to its present thriving level. The company has manufacturing ability and offers gorgeous, up to the minute fashion, and the essential items of the season at affordable prices.
The very latest fashions are stocked that offer value for money (quality and price) with new lines being added every week to ensure customers find something for every occasion.

25% of the stock is the company’s own brand and therefore exclusive to the stores, with unique designs and colours. The clothing range is extremely popular with customers returning time after time to buy the basic styles because of the competitive pricing, great quality and excellent fit, so no matter what the shape or size customers look cool and trendy.

The company has continually relocated to bigger and more prominent stores, which have proved to be more profitable and easily managed.

Assets

•2 x Mercedes Vans
•V W Touran
•Vauxhall Zafira
•Vauxhall Astra Estate
•IT System
•Shop fixtures and fittings
Competition:

The company do not ignore market trends and maintains a good awareness of potential competitor threat. There are other retail stores that add to this area being a “shopper’s destination” for both locals and tourists; however many of the popular products supplied to these stores are exclusive. The growth of this retail store is simply amazing!

Customer Service:

The stores offer an excellent and unparalleled level of customer service.

Technology:

Electronic Point Of Sale (EPOS) provides up to the minute information on the retail sales and is linked from the stores to the head office
Key Strengths:

These trendy ladies stores offer friendly service and competitive prices and are positioned in prominent retail locations adjacent to restaurants, nail salons, and so much more… all within walking distance. The stores specialise in apparel, shoes, handbags and accessories. They are truly one-stop shops for fashionable women and young ladies.

The store has established itself as the place to go for up to date quality fashion at very affordable prices; up to 20 new styles arrive in store every day, many of which are exclusive to the store. The company are able to respond quickly to fashion trends and can have winning styles made up and for sale in store within days. Merchandise can immediately be marked down and reduced if necessary making room for new styles, there is no red tape or waiting for head office instructions.

A high percentage of customers are teenage girls between 14 and 19 who are unaffected by market conditions. This is a lucrative market as these customers have very little responsibility and are usually in tune with fashion, wanting something new every week, which does not cost the earth.

Ready to be taken to the next level, this growing business offers a flexible full service operation that moves quickly in an ever-changing market. The company have a competitive pricing policy and swift stock turnaround and have developed a good relationship with customers and local community suppliers.

This is a tremendous opportunity to acquire a thriving business.
Premises:

All of the outlets are stylish modern and superbly fitted stores, well decorated with display rails, changing cubicles, sales desks etc. The stores have fully glazed frontages offering excellent display areas for the merchandise. All locations experience high customer footfall.

Store 1

Located in a prime location in an enclosed shopping mall the store is approximately 3,700 square feet. Leasehold with one year remaining on a renewable lease the rent is £150,000 per annum with an annual service charge of £28,500.

Store 2

Located in a prime location in an enclosed shopping mall the store is approximately 4,700 square feet. Leasehold with four years remaining on a renewable lease the rent is £100,000 per annum with an annual service charge of £32,000.

Store 3

Located in a prime location in an enclosed shopping mall the store is approximately 3,800 square feet. Leasehold with one year remaining on a renewable lease the rent is £80,300 per annum with an annual service charge of £25,000.

Store 4

Located in a prime location in an enclosed shopping mall the store is approximately 2,000 square feet. Leasehold with four and a half years remaining on a renewable lease the rent is £67,000 per annum with an annual service charge of £10,000.

Store 5

Located in a prime high street location in an enclosed shopping mall the store is approximately 2,000 square feet. Leasehold with seven years remaining on a renewable lease the rent is £36,500 per annum with no annual service charge.

Warehouse

The spacious warehouse is approximately 5,200 square feet and is leasehold with one year remaining on a renewable lease. The rent is £10,000 per annum with no service charge.
The company has the capacity to expand into other premises when the leases expire or have the option to re-negotiate terms on existing premises possibly at a reduced rate.
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 high gross profit and has shown consistent strong growth in profits. The financial stability of the company has been central to the success of the business and continues to be so. The current turnover is circa £3.6 Million per annum with a gross profit margin of 49%.
Personnel and Management:

•Four managers
•Twenty-two full time staff
•Thirty-two part time staff
•Five supervisors
•Three full time warehouse staff
•One bookkeeper
Support and Training:

The team is happy to negotiate a period of support and training for the successful purchaser.
Reason for Sale:

This successful family business has grown significantly and the vendors feel they have reached the limits of their managerial skills. They also have plans to emigrate in the near future.
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

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