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Established Formal Wear and Bridal Boutique
NCListing DetailsOffice ID: FORMAL1
Status: Active
Listing Broker: Jeff Snell, M&AMI, CBI, ABI
Listing Price: $625,000
Gross Revenue: $1,108,235
Cash Flow: $208,941
Inventory: $279,000
Inventory Included: No
FF&E: $42,955
FF&E Included: Yes
Real Estate Included: No
Sales Structure: Asset Sale
Seller Financing: Yes
Seller will consider a portion of financing as required by the SBA/Commercial lender. Purchase price includes $325,000 of inventory (retail and rental) at cost. Actual value of inventory at cost will be adjusted as of closing date. Inventory is not included in the asking price as it fluctuates over the course of a year. Actual value of inventory at cost will be added to the purchase price at closing.
Minority Owned: Yes
Reason for Sale:
Other interests
Owner will stay for a negotiated time to ensure a seamless transition.
OperationsYear Established: 1984
Form of Ownership: S Corp
Employees (full-time): 6
Employees (part-time): 18
Managers: 2
Business Hours: M-F: 10am - 7pm Sat: 10AM - 5PM Sun: Closed
Business Description:
This established and profitable business provides formal wear for both men and women. Many designs from popular designers are available in stock to meet a wide variety of tastes and styles. The business is operated year round from a retail location in a well know shopping center. This location has one manager with three full-time and up to 8 part-time employees adjusted seasonally as demand requires. For a portion of the year the business also operates a satellite location during prom season. This location has one manager and one full-time employee with up to 10 part-time employees. Furniture, Fixtures and Equipment include two vehicles. A 2000 Chevy Suburban with a new engine with advertising and a 2000 Chevy 1500 van with wrap. The business is a member of a national buying group that provides nationwide advertising, including photo shoots, significant ability to secure exclusive designer labels, directives to manufacturers, purchasing power with marketing partners, continuing education, biannual networking and industry specific /cost effective software and support. The business draws customers from a ~150 mile radius. The business also provides performance apparel to high schools (bands, choirs, etc.) as well as uniform sales to local country clubs & catering companies. Accessories are also sold. Diversification & specialties compliment the seasonal trends. Purchase price includes $325,000 of inventory (retail and rental) at cost. Actual value of inventory at cost will be adjusted as of closing date.
Historical Summary:
When originally founded this business was part of a franchise. The franchise was dissolved and many of the former franchisees chose to join a national co-op. This business is locally owned with a staff representing over 26 years of experience. The business offers wedding gowns, bridesmaid and prom gowns for purchase as well as complementing designer tuxedos and suits for rent or purchase. Wedding gowns, popularly priced, retail from $500 to $3,000.
Owner Qualifications:
Owner should have general management skills, a sense of fashion trends, enjoy working with people, have a basic understanding of business accounting and regulatory requirements.
There are a total of 7 stores in a 50 mile radius that serve the Raleigh, Durham marketing area of 750,000 + people with either gowns or tuxedos. The stores serve middle to upper end price ranges in all categories. Weddings are a fun & very personal business. Market diversification and specialties that compliment the seasons.
Potential Growth:
• Additional store locations in Greenville serving Kinston, Goldsboro and Rocky Mount • Additional store in Wilmington serving Myrtle Beach, Jacksonville & SE NC • In house alterations • Expanded offerings within the Mothers of Bride/Groom • Additional Designers • Maids/ Bridal accessory sales • Shoe sales • Wedding planning services and seminars • Make over/make up sales • Floral/ DJ/ Photography sales • In store ad sales
LocationType of Location: Strip Center
Lease Expires: Sep 3, 2023
Monthly Rent: $8,309
Square Footage: 4200
The business is located in a popular strip shopping center on a high traffic count road with ample parking in a well lit lot. The current lease for 4,200 square feet expires in 2023. The seasonal locations are in a popular indoor mall with high foot traffic on main corridors. Leases are negotiated on a year to year basis dependent upon availability and average 2,200 - 4,000 square feet. The monthly rent provided is inclusive of all rents paid averaged over 12 months.
Last Updated: Apr 14, 2017 / 10:05 AM
Financial Information Current as of: Mar 25, 2016 / 10:21 AM
Lender Pre-Approved!
Diamond Financial