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.
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.