Fantastic Brand With Large Client Base
Annual T/O £160,000 / GP 50%
Relocatable On Completion - Impressive web presence
Quick Sale Due to Ill Health
EPC - Not Required
Blacks Brokers are delighted to offer for sale this established brand/business which aims to provide Comfort, Support, Shape and Value for ladies lingerie.
Traditionally these key benefits have not been fulfilled – other products may look great but are very uncomfortable. These products have been designed to target in particular the larger woman – either large backs or large cups or both - providing them with attractive and well fitting lingerie, making them look great and feel comfortable. Whilst this is the target market in addition this brand does not exclude the smaller woman as the current size range is 30 to 52 in back sizes and A to J in cup Sizes.
This sector of the market has huge potential as ladies are getting larger in size and bust year on year. The reason the potential exists is simply the high level of obesity in current life styles and also because cup sizes are increasing all the time. It also gives a clear target market upon which marketing activity can be focussed.
The trade customers have been established through A) a network of freelance sales people who cover the whole of the UK and Eire, they currently service the customer base on a commission basis; and B) by the participation in Lingerie trade shows. This has been a cost effective way of introducing the product to the trade market, and it is also the opportunity to achieve further growth through more active sales and marketing.
The business has been developed over 12 years with initial investment in producing the products and establishing a foothold in the market.
The stock situation is managed by checking historical sales and using this as a forecast. Valuation of stock when the business is sold will be at landed cost price.
There is little competition for this product due to their relative uniqueness in the market. The trading position is very profitable and the business is ready for considerable expansion and to become substantially more profitable.
The reason for sale is purely due to the age and health of the owner. However he is willing to work on a consultancy basis for new owners if required. The vendor would prefer that the business is relocated on purchase but is open to negotiation on this matter.
This a unique opportunity to acquire a well respected brand name with a tremendous following amongst trade and retail customers. Renowned for its comfort and fit, with excellent repeat business. This a growing business with tremendous profit potential.
• Gross margin is about 50% - profit potential is very good.
• The brand name was registered as a Trade Mark on 11th December 2001 in the UK, with initial validity of 10 years and already renewed for another 10 years.
• Products are currently purchased from a large and well established manufacturer in Europe. They have stated their wish to continue to manufacture for a new owner, if required.
• The business has established a niche market in corsetry and lingerie for the larger woman (either large back or large cups), whilst recently introducing more fashionable products for the middle-aged and younger lady to offer a more complete range.
• Sales are predominately in the UK but are increasing to Europe, Australia and USA.
• There are 12 domain names registered.
• Brand loyalty is very high as the shops report that the customers love their products.
There are 3 sales channels, Trade, Web and Retail.
A) Trade sales are the most important with sales to about 150 trade outlets in the UK providing 90% of sales. Also supplying to a few shops in Europe, Australia, Canada and USA.
B) Internet website was established in Dec 2006. Sales to date (9% of turnover) are small but already beginning to pick up. The business has recently invested in a new web platform. A significant number of sales are repeat orders. Taken as a whole, internet sales are now the second best customer by sales, and best customer by % profitability.
C) Retail sales (1% of turnover) are from providing a service to the local population.
The business is being offered for sale for 100% of the issued share capital on a cash free debt free basis.
Location Details: Eye
Leasehold Term: Rent: Relocatable - Rent Not Applicable
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