Overview

Manufacturing

Closet Manufacturing Asset Sale of Building, Furniture, Fixtures and Equipment

Price: $2,800,000

Listing ID: CLOSET3

FF&E: $416,744

Year Established: 2006

Days & Hours of Operation: Past: Showroom: M-F 9-5; Factory: M-F 7:30-4

Inventory: $35,234

Listing Status: Active

Summary

Description:

The stated price of $2,800,000 is non-negotiable and includes the land, building, business and franchise rights. This is the lowest number the lender will accept pre-bankruptcy.

This popular franchised business is being liquidated but is operating.

Buyer may rehire available employees. The buyer may also elect to join the franchise system or operate on an independent basis.

Customers can choose between in-home, virtual, and in-showroom appointments. This business offers clients a wide range of customized products and installation services (design/build) including custom closets, pantries, entertainment centers/media rooms, laundry and mudrooms, but also has solutions for home office, garages, wall-bed systems, as well as crafts/kid’s areas.

Historical Summary:

The business was founded in 2006 and has except during the COVID era experienced steady growth since inception. 

It was purchased by its current owner in 2021. Initial franchise fee was $50,000.  Transfer fee $18,500 and renewal fee is after 5 years is $7,000.(paid by Buyer if electing to join franchise).

Competition:

The business utilizes proprietary engineering techniques and in-depth salesperson training that result in a higher quality, longer lasting and more functional solutions being delivered to the client. The result is happy customers who return for subsequent projects and refer their friends, family members and colleagues. 

Seemingly similar products are available from other "closet" companies and even big box retailers, but the overall fit/finish/functionality and quality are subpar and the overall offering of options is substantially smaller. 

Growth & Expansion:

In addition to the continued, annual growth of the Custom Home Organization market, this business also stands to increase sales as homeowners and businesses continue to adapt to working remotely with virtual meetings as a result of increased demand for optimized work spaces at home, home offices and traditional work spaces. 

This business is well positioned to help potential clients become more efficient and organized in environments that are ergonomic and consistent with people’s desire to live and work in spaces that are welcoming, inviting, and modern. Sustained population growth of the business area has helped bring a steady influx of new potential customers.