Feb
07
Exit strategy for retail clothing business?
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I am struggling in a retail business and am preparing to close. Any advice on the best options, liquidate, sell, lease financing? Would love to know more about lease financing and whether it is commonly done for retail businesses.
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1 Comments
February 8th, 2010 at 3:48 pm
Lease financing isn’t possible unless your lease has value such as an unencumbered 99/125/999 year term.
The retail clothing market is as tough as it gets and exit is probably your best option rather than struggling on.
You will need to negotiate a surrender of your lease with the landlord (and pay for the privilege) unless you can find a buyer for your lease - whether you can depends on location and the rent you currently pay and when the next rent review is - unless your lease has a break clause or is coming to an end.
Best to have a closing down sale and then sell the rest of the stock either on Ebay if you are willing to expend that time and effort or to a liquidation stock broker - there are lots on google or ads at the back of Drapers.
It’s unlikely you can find a buyer for your business if it is not profitable - unless a niche business or someone might want to amalgamate it into theirs.
Better not to go into liquidation if you can help it as it may affect your future activities.
Hope this helps and good luck.