Online Only, Contemporary Quilting Retailer, Many Ways to Grow
| Asking Price: | $875,000 |
| Gross Revenue: | $3,500,000 |
| Rent: | $23,616/Month |
| FF&E: | $50,000 |
| Cash Flow: | $374,000 |
| Inventory: | $500,000 |
| EBITDA: | $374,000 |
| Established Year: | 1999 |
11/11/24 LOWER SALES PRICE! Big Equity Building Potentail
This is an online only craft fabric retailer that is located in the North West Denver Metro area. They have a huge selection of high-quality fabrics and sewing supplies, with over 15,000 products online and in stock located on site in their 13,000 square foot warehouse/office. Crafters, Fashion Designers, and Home Decorating sewers love their fast service, huge variety, and custom cutting to their specifications.
The trailing 12-month revenues were 3.5M with earnings to September 30th of 374K. The sales price has just been lowered to 875K plus inventory and would like a long term lease or to sell the building that they are in. I believe that this has one of the largest equity building potentials of any business that I have represented in at least 5 years. You can easily grow this business.
The owners state that they are not advertising/marketing people and that a marketing oriented new owner can grow this business much larger. The location is using less than 50% of their warehouse space and the new owner can easily start a related online sales business using the same inventory which would have significant cost savings and overlap in inventory.
The Sellers are husband and wife and will be retiring. Both would stay part time if the new buyer wants one or both of them to. They started the business in 1999 and have created a great foundation for someone who knows how to drive more online traffic to the website to take this to the next level. The business has 25 mostly long term and very loyal employees who are passionate about what they do. They have 2 “key” employees, an office manager who has been with them for 17 years and is has been thoroughly groomed to take over the main owner’s job when the business is sold, and a warehouse manager who has been there for 12 years and can fill in for every key employee also.
This well-known business has helped to modernize their industry through updated colors and patterns. This company has built a fantastic foundation that the new owner can build on. They have a fast and interactive website, 117,000 subscribers to their online newsletter, a great reputation as proven by their 4.8 star Google rating, 4.7 star Facebook with 12,448 followers, 95,000 Pinterest followers, emphasizes customer service, and has a custom-built office/warehouse which is only half utilized. This all adds up to a very valuable foundation to future growth.
The business price has just been lowered again to 875K plus a discount on the current estimated inventory value of 650K that they will sell for 500K creating a total sales price of 1.375M. This is an S corp. The business is being offered with the Sellers keeping their cash and collectable AR. They have no debt and will pay off their AP at the closing. They also have a building that they custom designed and built in 2018 for this business that is for sale or lease also. The building was appraised for 5.91M and has been fully leased since 2018 or the new owner can have a 6-year lease with auto extensions at the market rate.
This is a “Fulfilling and Fun” Business to Own and the Owners feel confident that they can teach the buyer the business easily. They have created training manuals, have already created the perfect website and analytics to react to statistical trends, and built a roomy, employee friendly building customized to their business and employees. This is not a business that can just double or triple. This is a rare opportunity to create a large amount of future equity while loving what you do. This would be great for a family, private equity, or a marketing expert who wants to benefit from his/her skills.
