Highly Profitable Manufacturer and Wholesale Distributor of Women's Branded Apparel. The company manufactures (oversees) and distributes (from their Los Angeles office) private label and branded line garments to independent and major retailers in both domestic and international markets. In business for over 30 years, the company is headquartered in Los Angeles which houses various departments such as Design, Office Services, Warehousing, Production and Shipping department. Long term, trained employees in place - 6 full time including an in-house designer, office staff and 3-4 seasonal employees as needed. All manufacturing is done in Asia by 4 - 5 companies with long-term relationships that are transferable. There are several independent Sales reps in major fashion markets across the US and the company has a key presence at all fashion trade shows with prime positioning. Late last year, the owner hired several new sales reps in the greater New York area which has contributed to higher sales.
The owner has attended 2 major trade shows in the first quarter of 2019 which has resulted in historically high pre-orders and signed PO's for this year. There are still several other trade shows to attend throughout the year. As per the seller, he is expecting this trend to continue, and he is projecting the company to hit $4M+/- in revenue for 2019 compared to $2.3M+/- in 2017 & 2018. Based on historical cash flow margins over the last 5 years that equates to over $500,000+/- in cash flow.
The brands are known for strong product development and reorder fulfillment. The private label and catalog business clientele base include known retailers like Boston Proper, White House Black Market, Burlington Coat Factory, Macy's, Nordstrom, Bloomingdale's, Barneys New York and others. The company primarily features women's knitwear, sweaters, jackets and coats targeted to the contemporary and specialty markets. 75% of the business is Fall/Winter items. Growth opportunities include expanding the Spring/Summer lines with the existing customer base. Finished goods from China are shipped to Los Angeles for distribution packaged and ready to be delivered to clients.
Purchase price includes $200,000 +/- at cost of active, salable inventory. Seller will carry a note and provide Seller Finance for a qualified buyer with a reasonable down payment. The company has several high growth opportunities that the seller will discuss including expanding to on-line sales on their company website or Amazon, which they currently do not do. Seller is elderly and looking to retire but will consider staying on for up to 9 months. Seller will provide ample training to a qualified buyer. Excellent books and records including tax returns. This is an excellent value at this price and everything is in place for this business to expand and 2019 is looking to be a great year!
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