Unique Retailer Of Adult Clothing Sex Aids And Fetish Products With In House Manufacturing | | Undisclosed London | | Unique retailer of Adult clothing, sex aids and fetish products with in-house manufacturing Ref.AB193 Location North London Asking Price £350,000 plus stock at valuation | | BUSINESS FOR SALE ADVERT DETAILS ADVERT NUMBER : 49007
ADVERT IMPRESSIONS : 18,102 TIME(S) | | | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Cloths & Fabric Shops | | SALE: | Agent Sale | LEASEHOLD: | £350,000 | | | | | | | | | | Add this business advert to your: | | | | | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
This unique business was founded by the vendors in 2000. After a year in a small retail unit, they moved to their current premises in North London in 2001. With a name from the beginning for stocking fetish clothing, sex aids and equipment at the more extreme end of the market, the business has grown rapidly and built-up a loyal customer base of regular clients and referrals. The product ranges on offer tend to appeal to the male sector currently, although there is now an exceptional opportunity to move into the female marketplace.
The business has an on-site manufacturing division which produces an in-house range of clothing and bespoke equipment made to order. The product range is constantly being further developed with customer input, enabling the business to be at the forefront of the industry. Bringing the manufacturing in-house has also led to a dramatic increase in profit margins achieved. The trade name of the business, and the clothing range label, have an excellent reputation in the marketplace for quality of workmanship and detail. Over the years the company has built a tremendous number of patterns for future manufacture which has taking time and investment. These patterns in themselves are conservatively valued at around £20,000.
The business has very limited competition in the UK and across Europe. A number of key ranges are imported from the US, and the retail operation received regular visitors from continental Europe and further a field. The business currently receives the majority of its revenue from retail customers, although there is an extensive on-line presence across a number of domains with a full catalogue offered mail order. Although trading in the adult marketplace, the business does not need to adhere to any particular licensing as they do not stock adult magazines, DVD’s or restricted material.
Due to the positioning in the marketplace, and the number 1 market presence, the business is also the first on call from Directors, Producers and Research Staff working in Television, Theatre and Advertising Agencies. This has resulted in an extensive amount of PR, with the company name being mentioned repeatedly on shows broadcast by the BBC, Sky, Channel 4 and other channels focusing on the adult / fetish sector.
Equipment:
The retail business operates with a cash till, streamline credit card payment machine and a computerised database of circa 1500+ customers receiving promotional material. In the manufacturing area is a leather press, patterns, knives and 6 sewing machines. The shop unit has display fixtures and fittings through-out for the stocking of a large range of cloting and equipment.
Customer Service:
A business in the retail / mail order sector is built on customer service. This is appreciated by the vendors, and shown by the amount of positive reviews, repeat customers and the level of business achieved. In this particular sector, attention to detail, discretion and personal service are particularly appreciated, it is with this customer focus that the business really surpasses, and with the ability to try goods on-site and receive bespoke designs, the customers return time and again for a truly unique product range and retail experience.
Key Strengths:
The business enjoys zero direct competition in the marketplace and has carved out a highly profitably niche with the number 1 name in the business. By achieving this, the company is now regularly called upon as the experts in the sector, which in itself generates great levels of natural PR across media. The business is located in a busy area, and is well known by the target market. The reputation is very strong both in terms of the range of products on offer, and also the in-house label. The on-site manufacturing allows for great levels of quality control, customer service, and importantly exceptional margins.
Growth and Expansion Opportunities:
The business is very well placed for future growth in a number of directions. Whilst there has always been a focus on the male marketplace, with recent movements of retailers focusing on the female customer, the business can easily move into this area. The owners of the business are confident that by moving into the female marketplace, overall turnover could be doubled in the next few years. The manufacturing operation can handle a move into female clothing and attire, without a great increase in overheads.
The business has also always focused on retailing and serving the end user directly. As they have now achieved such a market presence, they can grow by either opening another outlet, or moving into wholesale, particularly with the in-house clothing label so well known. The business currently operates with 5 key websites, these could be expanded into more niche sites focusing on different products / market areas.
Premises:
The business premises occupies approximately 2,200 sq ft, with 600 sq ft devoted to manufacturing space, and the remained as a large retail area. There are a number of fully fitted rooms for display areas.
There is 1 year left on a fully renewable lease, allowing for renegotiation. The current annual rent is around £29,000, with business rates payable circa £9,800. There is a unit to the rear of the premises which is due to become vacant, and may be of particular interest to new owners for expansion.
Business Hours:
Monday – Saturday: 11:00 am – 7:00 pm
Sunday: Closed
Security:
There main entrance to the shop is by coded entry, with customers required to be buzzed through. There is a Red Care alarm system, and CCTV in operation.
Advertising and Marketing:
On launch the business conducted numerous advertising campaigns in lifestyle magazines, Fetish and Gay Press. They were also featured and still are in Time-Out London. There has been a great deal of PR over the years, with the shop and products detailed in many Television programmes . There are 5 websites detailing the entire catalogue of stock, with each website optimised for search engine rankings. The business now receives a lot of recommendation and referral from past and present customers.
Financial profile:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
For the last full years trading the Turnover was circa £450,000, with a Gross Profit circa £210,000 and an Adjusted Net Profit circa £110,000, once Director’s Salary, sundries, repairs and new workshop costs are taken into account. The Assets, Fixtures and Fittings, including patterns and designs are conservatively valued at circa £45,000. The recent stock take showed a level of approximately £88,000 held.
Employees:
The business employs the 2 vendors as full-time Directors responsible for all overall business administration, operations and day-to-day management. In support full-time are a Sales Manager / Web Administrator, Mail Order Manager, and 2 clothing manufactures. The manufacturing division also employs a part-time seamstress and a self-employed designer / manufacturer.
Support and Training:
The vendors are agreeable to a period of training and handover for the successful transition of operations to new ownership.
Reason for Sale:
After many years in the business, and with recent health issues affecting the partnership following a traffic accident, the vendors feel it is time to hand the business over to new owners with fresh energy levels to take things forward. | | | | | | FOR SALE | | | | | REFERENCE: | AB193 / RightBiz | | | | | | Request more information about this business.. | | ENQUIRIES: | | | | CONTACT SELLER TO GET THE SELLERS DIRECT CONTACT DETAILS AVAILABLE TO MEMBERS ONLY | | | | | | | | | | | |
