Ref: AO067
Offers invited over £1.5M
incl SAV of £700,000
sophisticated fully functional website
integrated payment system
integrated stock control system
proven business model
repeat customers
superb platform for growth
The business:
The Devout is an entirely new concept in the online retail fashion market. Rather than selling clothes, it rents them on a repeat subscription basis. Subscribers to the service pay a monthly fee and in return receive each month a package of the clothes they have chosen from the website. At the end of the month, the clothes are returned, laundered, pressed and ready for their next rental. The subscriber meanwhile enjoys a fresh wardrobe every month for no capital outlay.
The website is highly functional, easily navigable and completely integrated to stock-picking, deliveries, payments and returns.
Some £500,000 has been spent on developing this highly sophisticated software ERP.
A new feature for subscribers to buy their clothes at discounted rates at the end of the month has just been created.
Financials:
The business is currently carrying approximately £700,000 of stock. Stock turn rates are running at 65% per month. More stock would produce greater rates, higher sales and more subscribers.
Sales are running at c£32,000 per month (incl. VAT) with net operating margins of c20%. The subscription base is increasing month on month and the average monthly customer spend is £55 per month.
Intellectual property
The website, functionality and operational software of the business is a proprietary system. The business fully owns the IP to the software that is has built internally that runs the front-end consumer site, dispatch and laundry process.
There would be the opportunity for new owners to licence the software to other retailers as is commonplace in this sector.
Premises:
The business operates from leased warehouse premises where the laundry and dry cleaning facilities are also based.
Employees:
The company currently has 6 FTE (1 customer service, 1 marketing, 2 warehouse, 1 developer, 1 stock assistant).
Opportunity:
The business is a fantastic opportunity for a large retailer to create a new route to market and generate multiple returns from its existing or redundant stock.
This is a turnkey operation, which can either be licensed to multiple operators or sold in its entirety.
