Business For Sale

Outerwear, Sportswear and Activewear

Not Disclosed, CA
Los Angeles County

Los Angeles County

Asking Price: Annual Revenue:
$2,856,025 $8,391,253

Retail: Clothing & Accessories

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RE: Outerwear, Sportswear and Activewear Broker: Mark Tzalka

Quick Facts

Asking Price: $2,856,025
Annual Revenue: $8,391,253
Net Profit: Not Disclosed
Cash Flow: $652,619
Total Debt: Not Disclosed
FF&E: $102,223
Real Estate: Not Disclosed
Year Established: 1989
Employees: 9
BBN Listing #: 86894955
Broker Reference #: 7202-14182

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Business Overview:

Specializes in Private label and stock production of Outerwear, Sportswear and Activewear.

The company operates in the Apparel Wholesaling industry, where revenue growth has been sluggish over the past five years. During the earlier half of the period retailers offered steep discounts to consumers in order to retain sales. Due to weak downstream demand wholesalers were left with excess inventories and slashed their prices to move stock.

Many manufacturers have vertically integrated and now act as wholesalers, resulting in increased profit for them and for retailers by cutting out intermediaries in the supply chain.

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Property Features and Assets:

The company is headquartered in the Los Angeles area in a commercial building within a commercial park environment. The company occupies 5,000 square feet, which includes office space. This is a new location for the company, and will result in a lower yearly rent payment. The Company uses a commercial warehouse, also in the Los Angeles area, for 3rd party fulfillment - almost all inventory is shipped in containers from China to the Los Angeles docks and delivered from there to the warehouse. The Company pays the storage company usage fees based on storage and # of transactions. The Company uses the OMS (Office Management System), an integrated system covering general ledger, accounts payable, accounts receivable, purchase orders, and inventory. This software and all warehouse and FF&E is included. A complete and separate list will be provided. Total Assets: $3,068,381

Market Competition and Expansion:

Many manufacturers have vertically integrated and now act as wholesalers, resulting in increased profit for them and for retailers by cutting out intermediaries in the supply chain. While apparel is among the first things consumers cut back on in times of economic hardship, over the five years to 2016 demand from clothing stores was anticipated to increase at an annualized rate of 1.8%. The CEO / owner’s forecast for revenue from new product lines (hard goods) through 2023, and? trends identified from operating statements for the period 2013 - 2015, for COGS and operating expenses. The following assumptions were made for the forecast and growth potential. Revenue: Over the period of 2012-2016 the apparel industry grew at an annualized rate of 0.5%. However, this included expected growth of 1.7% in 2016, meaning that for the period 2012-2015 industry revenue declined at an annualized rate of 0.36%. By comparison, for the period 2013-2016 the Company’s revenues increased. It is assumed that over the period 2018-2023 an industry partner/acquirer would grow revenue at a substantially greater rate.

Reason for Selling:

Need for consolidation.

Additional Details:

  • The property is leased.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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