Summary: 
3 Key Managers allow the Owner to oversee business just 10 hours a week!
Business Type: 
retail
Location: 
Nebraska
Price: 
$1,490,000
Sales Revenue: 
$5,355,836
Cash Flow: 
$376,300
Realestate Included: 
No
Inventory: 
$670,000
Employees: 
153
Internal Listing:: 
RET012
Reason for Sale: 
Owner has grown this business over the past 20 years and is beginning a new venture to grow for the next 20+ yrs

Description
Three key Managers allow the Owner to oversee the business just 10 hours a week! Resilient to economic dynamics this used clothing industry adapts to lucrative opportunity and proves sustainable profitability. Within just 12 months, in 2014, the business saw 266,777 customers! Annualized 2015 retail sales will be $3,500,000 for in-store purchases only (this number does not include export revenue) this is an increase of nearly $300,000 from 2014’s retail sales. Retail sales average $12 per transaction at a rate of 800 transactions per day, 24,000 per month and 292,000 per year. Each item sold averages $3.00 with 1,166,000 pieces sold for 2015. The business has a warehouse and call center in Council Bluffs, IA; they have 4 Retail Stores in Omaha and 1 combined Retail Store/Warehouse in Kansas City, KS. A Buyer would receive Furniture, Fixtures, and Equipment that originally were purchased for $1.7MM which is included in the purchase Price. The locations also come fully stocked with inventory; currently: $670,000 Total Inventory - $170,000 in stock at main warehouse, and $100,000 in stock at each location which totals $500,000.
A contract with a non-profit organization which is key for quality donations. The business is contracted and affiliated with two non-profit organizations. The staff in place coordinates all aspects of collection of donations, from marketing to pick up and distribution of donation receipts. Donations are received from thrift stores, non-profit organizations, clothing bins throughout towns, retail stores and door to door by appointment only. Most volume comes from thrift stores while the best quality comes from door to door appointments. Telemarking and email marketing to 250,000 collection establishments is centralized in house. Inventory is rotated on a 6 week basis from retail to warehouse. In addition to retail revenue, the turnover inventory is sold internationally as exported bails of bulk inventory for third world countries and areas of disaster that have need. Exported shipments consist of 3 loads of mixed rags on a monthly basis, 1 export customer shipment per month and 1 load of shoes every 4 to 6 months.
With 6 locations and employing over 150 individuals with 3 managers in place that run the daily operations, this seller has strategically positioned this business for acquisition or new ownership as he transitions.

Financial Overview
List Price: $1,490,000
Gross Sales
2014: $5,658,907
Export Revenue: $2,457,589
Retail Sales: $3,201,318
Retail Sales Mix: 55% Clothing, 5% Shoes, 5% Furniture, 35% BricBrac
Total Customers in 12 Months (2014): 266,777
Owner Profit/Cash Flow
2014: $338,628
Multiple: 4.4 *Multiples range from 1-5, with the average being 3
Valuation: 2014 Cash Flow x Multiple = Fair Market Value
$338,628 x 4.4 = $1,489,963

Assets Included in Purchase: $1,470,000
Equipment: $500,000 Fair Market Value worth of in store Furniture, Fixtures and Equipment originally purchased for over $1.7 Million
Vehicles: ~$300,000 worth of 10 owned and 6 leased moving trucks, material handling equipment, fork lifts, conveyors, tools,
transportation trucks
Intangible Assets: POS system
Inventory: $670,000 Total; $170,000 in stock at main warehouse,
$100,000 in stock at each location which totals $500,000
*amounts may vary

Business Information
Year Established: 1996
Location and Service Area: Warehouse and call center in Council Bluffs, IA; 4 Omaha Retail Stores and 1 Combined Retail Store/Warehouse in KC
Customers: Average sale per customer is $12; an average of 800 customers per day, 24,000 per month and 292,000 per year
Facilities: One location is owned and being sold independently, the remaining 5 locations are leased
Reason for Selling: Owner has grown this business over the past 20 years and is beginning a new venture to grow for the next 20+yrs
Employees: 3 managers in place that oversee all 6 locations which all have been with the company for over 7 years, Addt’l 150 employees staff the locations and warehouse; skilled mechanic for 90% off maintenance
Hours: Monday – Saturday 9am – 9pm; Sunday 9am – 7pm
Seller Training Period: As much help for as long as needed
Growth Opportunities: By increasing price per item by $0.10 a profit of $116,600 would be realized, tremendous potential in product presentation and pricing in the volume, penny business
Current Owner’s Responsibilities: Owner has standardized procedures and processes as well as trained management to be able to only have to work directly with 3 managers 10 hrs/wk

Funding Example
Purchase Price: $1,490,000
10% Buyer Down Payment: $149,000
15% Seller Financing: $223,000
75% Bank Loan: $1,117,500

Net Operating Income (Profit) $97,512
65% Return on Down Payment in Year 1

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