business for sale

Wholesaler of quality underwear, nightwear, corsetry,socks, gloves, glamourwear and workwear for men

Businesses for Sale

Sale Memorandum

Wholesaler of quality underwear, nightwear, corsetry,socks, gloves, glamourwear and workwear for men and women


Ref.AB079

Location North West

Asking Price £ 500,000

Confidential offered for sale

Asking price: O.I.R.O £500,000 + SAV

(Additional freehold option available under separate negotiation)

Asking price includes:

Reputable company supplying high quality product lines
Well- established business with extensive client base.
Consistent turnover in excess of £2million p.a.
High profile leasehold premises
Excellent profit margins
Own Brand Label
Over 50 years successful trading
Superb reputation
Excellent potential
Interactive website
Nationwide sales coverage
Extensive range of products
Fully computerised EPOS system
Excellent credit rating
Training and handover
Goodwill
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 very successful and established business is a wholesale cash and carry facility based in a prime location in the North West of England, in an area reknowned for the supply of clothing and related products and accessories.

Established back in 1948 this still family run business provides underwear, nightwear, corsetry, socks, gloves , glamourwear, and workwear for both men and women and boasts some of the largest ranges of product in the market today.

The business has a very impressive client list that spans the whole of the UK and overseas. Clients include other wholesalers, retailers, market traders, party planners and internet users to name but a few.The current client base consists of some 1500 concerns all of which are serviced by a variety of means, be it direct through the cash and carry, by phone,by fax, via the internet or via the sales agents. All stocks are distributed via carrier so as to ensure prompt and secure delivery. Client satisfaction is paramount and the company prides itself on its ability to meet client fulfilment levels each and every time.

The site is very well laid out with over 12000 square feet of stock space(6000 square feet showroom with further 6000 square feet of stockroom space) as well as a canteen area with toilets so as to ensure clients are kept suitably refreshed each and every visit, especially when they have travelled for a considerable amount of time to visit the site. In addition to this the site has a private secure car park so as to ensure ease of access, loading etc.

The business has traditionally purchased goods or commissioned them to be made by British companies or importers based in the UK and it is this very well established supply base that ensures prices are always kept competitive and quality maintained, be it for the own brand or other well recognised and sort after brands. The company also has excellent relationships with many of the suppliers to the High Street and regularly takes advantage of these relationships by purchasing chain store overmakes as and when they become available.

This business’s unique product and pricing mix gives its client a distinct competitive advantage.

The company provides the majority of its products from stock and offer a most efficient and effective service, with next day delivery in most cases. Many of the products supplied are exclusive products, giving the business a substantial advantage within the market.
Customer Service:

The company has been successfully trading since 1948 and since inception has always held the belief that satisfied clients return. This ethos can be demonstrated by the very high customer retention levels the business enjoys.

Key Strengths:

This well-established Company prides itself on offering the most in demand quality products from stock on time every time. It is able to do this by having exceptional relationships with its suppliers and clients. The business is further supported by a committed and experienced team of staff and agents.

The business has an enviable reputation within the industry as you would expect from a company that has been successfully trading just short of 60 years. Within that time the business has secured a wide and loyal customer base at the same time putting the company on a very sound financial base for future growth and success.

Growth:Expansion:/Opportunities:

Whilst the company has consistently been achieving turnover in excess of £2 million for some years it is aware there are further opportunities to develop the business.These include

•Further development of the “own brand” product range and label.
•Expansion of children’s underwear range
•Expansion of workwear products
•Development of the importation of products
•Additional sales people/agents to give more market penetration in certain geographical regions
•Further development of the website

There are several excellent opportunities to increase the level of business. The present owners consider that incremental business could be achieved not only with existing customers but also by the development of new markets by expanding the sales force.

A new owner with sound management experience will provide enthusiasm, impetus and energy and possibly a wider range of products to drive the Company forward thus exploiting potential new business. It is also understood that development of the importation side of supply could significantly improve the already impressive profit margins this business enjoys.
Premises:

The vendor owns the freehold of the business, which is not included in the current sale price.The owner proposes granting a new lease to the successful purchaser at a rent agreeable to both parties. However should a new owner require the freehold of the building the vendor is willing to consider offers for this under separate negotiation.

The unit is in excellent condition and situated in a prime position close to the city centre. It comprises 6000 square feet ground floor showroom with canteen area, cloakroom, small office area and customer toilets. On the first floor there is an additional 6000 square feet of floor area, currently utilised for stock. There is substantial shelving to house the stock. There are several display windows and excellent signage.

To the rear of the building there is a private secure car park with spaces for 8 cars. There is further parking available on the public highway. All services are connected to the building as you would expect from such high profile premises. Rates currently stand at £16,000 p.a.

Business Hours:

09.30- 17.30 Monday, Tuesday, Wednesday
09.30- 17.00 Thursday
09.30-13.00 Friday
Closed Saturday
08.30- 13.30 Sunday

Security:

The building is secure. All doors and windows have roller shutters, internally and externally, and the building is fully alarmed.
Advertising and Marketing:

A large percentage of new clients derive from recommendations, the business regards existing clients as their best advertisers and has maintained an impressive base of satisfied repeat customers while continuing to attract new referrals.

In addition to this the company has a well designed interactive website that enables clients to purchase online. This site is ripe for further development and represents significant growth opportunities to a new owner.

The company also sends out seasonal newsletters to its customers to keep them abreast of current offers as well as offering business advice and tips. It also advertises on Yell.com
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 current turnover is in excess of £2.1million. The business has achieved comparable sales figures for the last 10 years and is financially stable with low overheads and no borrowings. Gross Profits in excess of £350,000 p.a.
Employees:

There are 3 working directors within the business as well as 3 further full time employees. In addition to this the business has a network of 8 self employed agents across the UK who work on a commission only basis.
Support and Training

The current owner will provide all necessary training and handover to ensure a smooth transfer of the business to the new owner
Reason for Sale:

Health Reasons.
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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