Retail Oriental Rug Company In Business 37 Years, Owner Retiring

Business Overview:

Oriental Rug Stores historically have a mystique associated with them as very few people not from countries that produce rugs understand the product. The reality is that you don’t need to be from one of the “Old” countries to successfully operate an oriental rug store in the U.S., and if fact, once you understand the business there are certain advantages in not having “Old World” roots. One of the largest and most complete selection of hand-knotted rugs in the U.S, imported directly from India, Iran, Pakistan, Afghanistan, Turkey and Nepal. The business is known for selecting every rug at the source and cutting out the middleman. Has been in business since 1985, has an excellent reputation with retail customers, and in the rug industry as well. Book value of inventory is approximately $1,500,000. This number is much lower than comparable retail oriental rug stores as it is imported directly. Delivery van, other equipment, and leasehold improvements of $777,275 have been fully depreciated and included in the sale.Business is run very professionally utilizing accepted accounting techniques to value inventory, generate income statements and balance sheets. The business is located in a beautiful stand-alone building in the premiere retail location in it's market. Seller is willing to include a long-term lease at below market rent as part of sale of business. During 2020 (Covid Year) the company-maintained sales of $1,088,124 and net profits of $179,935 with “Seller’s Discretionary Earnings” were $292,435. The sales have increased 23.6% to $1,345,829.21 during 2021 and higher in 2022.During 2022 the company had revenues of $1,352,459.74 with a Net Income of $270,883.36. The estimated “Seller’s Discretionary Earnings” were $417,746.Owner is willing to work for buyer for a period of time, in order to train/familiarize buyer with business. Seller is also willing to make one overseas buying trip with buyer to introduce buyer to suppliers and assist/train in buying techniques.

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Market Competition and Expansion:

This established business enjoys brand loyalty with customers and is known in the market. Oriental rugs have been an excellent choice for decades. This trend never runs out of style due to its specific elegance. From the living room, dining room, bedroom, entryway, nursery, dorm room, study, home office, or eat-in kitchen, the oriental design will enhance every room in your house.

Reason for Selling:

Retirement

Additional Details:

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