May 4, 2019 — Popular men’s clothing brand expanding from Taiwan to Southern California has three new retail stores located in well-known and high-traffic shopping centers.
The brand produces attire, from shoes to shirts and suits that have a distinct European style with a touch Asian-inspired flare. The clothing aims for the market of men who are looking for elegant fashion choices at affordable prices. Since its U.S. opening in 2016, revenue has grown tenfold.
Sellers, those who currently hold exclusive distribution rights for Southern California, have invested upward of $485,000 building out well-designed and attractive stores and have create a warm, modern and fashionable spaces in which customers feel comfortable and pampered, while providing the best products to its customers. This is a substantial value to a Buyer who will not have to invest any money in improvements for years to come.
Governed by the parent company of an international brand, the Sellers have experienced more barriers to operating smoothly in the U.S. market than anticipated. They attribute these obstacles to language and cultural differences as it relates to staff management and operating systems; how to run efficient operations and keep expenses down. They hope to find a local Buyer that already has expertise in running fashion industry operations in the U.S. market so the stores can thrive and the brand will continue to grow here.
The sale includes exclusive distribution rights in Southern California; the leasehold improvements of all four stores; all shares and assets of the U.S. corporation. The existing inventory, subject to change and to be detailed at closing, will be available for the business Buyer to purchase at cost.
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Facilities: Three 1,500 to 3800 sq., ft. stores in Southern California plus office space in Brea.
Competition: Fashion is a competitive industry, but this brand is highly differentiated and there are typically few stores offering menswear items that cannot be already be found at multiple locations.
Growth & Expansion: A Buyer could grow customer its base with targeted social media and targeted advertising. Much potential exists for additional stores in other locations. An owner who does well in human resources and expense management can certainly take the business to the next level.
Financing: If the price and deal structure is right.
Support & Training: 4 weeks at 20 hours per week.
Reason for Selling: Change of distribution strategy for the U.S. market.