Upmarket Ladies Fashion Retailer Somerset For Sale

Business description

HIGHLIGHTS:
• Reputable concern trading in the town for over 53 years.
• Stocking exclusive and desirable fashion labels.
• Good profits generated – net sales £335,430 in year ended January 2009.
• Business development potential available to enhance trading performance.
• Stock purchase optional.

BUSINESS:
This very well known upmarket ladies fashion retailer has traded in this attractive and historic Somerset town for in excess of 53 years. The vendors purchased the business in 2006 and have since found the logistics of running this concern and their other business based in Gloucestershire very challenging. In preparation for retirement they have decided to sell this shop and concentrate on their other retail outlet which is located closer to their home in Cheltenham. It should be noted that the trading name must change on the transfer of the business.

The business stocks a wide range of quality ladies fashion wear from leading fashion houses. Lines include Gardeur, Marcona, Fisser, Gil Bret, Catherina Hepfer and Wichele. Collections are sourced from the United Kingdom, Europe and beyond including footwear and accessories. The theme throughout the store is based on lifestyle dressing for ladies from aged 25 years and upwards.

The vendors spend one day per week at the shop which is run under management for the remainder of the trading week. A full-time working owner could reduce the current wage and improve profitability to levels as described above should they so wish.

LOCATION:
Somerset town.

TRADE:
The business trades through the medium of a limited company and consolidated accounts are prepared for the two retail outlets within the group. Extracted figures will be provided by our clients accountant in the form of a Profit & Loss Account for this outlet in isolation, which will be released to seriously interested parties at the appropriate time. Sales excluding V.A.T. for the financial year to 31st March 2009 were £335,430 generating a gross profit margin of 46% and an adjusted operating profit of £67,000 to a full-time working sole proprietor (before finance costs, depreciation, owners remuneration and personal tax).

HOURS:
Monday to Saturday: 9 a.m. to 5 p.m. Closed Sundays and Bank Holidays.
There is scope to introduce Sunday trading should a prospective purchaser so wish.

YEARS ESTABLISHED:
53 years, 3 under the current owners

REASON FOR SALE:
Owners wish to concentrate on their other business interests.

STAFF:
Operated by a husband and wife team who visit the business once a week in a management capacity only, the business employs the following staff:
• 1 x Retail Manager
• 1 x full-time Sales Assistant
• 6 x part-time Sales Assistants

PROPERTY DESCRIPTION:
Deceptively spacious mid-terraced Grade 2 listed stone built period premises which have subsequently been extended to the rear over the years.

The ground floor includes a sales area, an under stairs office, rear staffroom/stockroom and an additional stock storage area, covering approximately 400sq ft.

On the first floor there are four showrooms, five retail sales areas, two stockrooms and a small office, approximately 2,800sq ft.

The second floor consists of a small under stairs storeroom, 2 toilets and 5 huge stockrooms. Potentially amazing footage for any behind the scenes projects, approximately 2000sq ft.

OUTSIDE:
Car parking for 4 cars

TENURE:
The premises are held on lease for a period of 6 years from March 2006. Present rental £15,000 per annum, exclusive of rates. The lease is subject to no increase in the current level of rent. The landlord would be prepared to grant a new lease to a prospective purchaser for a longer term if required. We understand that the present level of rental will remain under the terms of a new lease. The lease is held on fully repairing and insuring terms.

OPPORTUNITIES:
There are tremendous business development opportunities to exploit should a prospective purchaser so wish:
1. Develop own label lines. There is potential to improve the gross profit margin significantly if own label lines were sourced direct from manufacturers.
2. Actively market the valuable database of existing clients which number approximately 4,000.
3. Introduce a proactive website offering secure on-line shopping facilities.
4. Sub letting opportunity has great potential

LEGAL FEES:
Vendors and Buyers each to meet their own legal costs, but if a lease is to be assigned from the vendor to the buyer they will also be expected to share the landlord’s legal costs on a 50/50 basis. If a buyer wishes to negotiate a ‘new’ lease, they will be responsible for all the landlord’s legal costs.

LOCAL AUTHORITY:
South Somerset District Council

COMMENTS:
Given the reputation established by the vendors and the previous owners which spans in excess of 50 years, current levels of profitability, the good trading location and very well presented premises, this is an excellent opportunity to acquire a quality concern which is priced very reasonably for an early sale.

VIEWINGS:
By appointment via agent only.

GUIDE PRICE:
The vendors are seeking £39,500 plus stock at valuation, for the lease, business goodwill, fixtures, fittings and equipment, subject to inventory.

VALUE OF STOCK:
To be taken at valuation at cost price on completion in addition. Due to the nature of the trade stock fluctuates from season to season and final figure is negotiable - guide approximately £50,000.

It should be noted that the purchase of stock is optional – the vendors will relocate existing stock to their other site in Cheltenham if required.

Property information

Property:

Leasehold