Feb
07
Exit strategy for retail clothing business?
By
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.
Rent Back
What is the most cost efficient way to run a retail food business without leasing a space? A retail food business owner can not produce products in their personal kitchen. I can not afford to lease a retail space. Do you have any advice on how to make this work?Passive Income ...
How To Put Equipment Leasing and Small Commercial Mortgages to Work for Your Business? What is the first thing that comes to a small business owner’s mind when they need money to start or grow their business? More often than not, it’s a bank loan. Unfortunately, it is also one of the most difficult ways to finance a small company since banks are...
breaking a retail business lease which hasnt commenced yet? Question : Breaking a Retail business lease which hasnt commensed yet Question Details: we currently own a business in a shopping centre, our lease runs out in december and the landlord wont renew the lease as they have plans to turn the shop into a bank they have offered...
What are the key tradeoffs to consider when deciding to buy an existing retail business or start from scratch? Of course the price of buying the existing business, but what other factors favor buying an existing business (w/lease, licenses etc.) and re-molding it, or favor starting from scratch (acquiring permits, lease etc.)?Quick Property Sale ...
criteria to lease a retail space to establish a business ? I am thinking of leasing a retail space (approx 1000 square feet) to open a retail business. I heard that i need to have a good credit. Is this “good credit score” in credit report that the landlord will look at? or is it more than good credit score?...
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.