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Outerwear Apparel Manufacturer With Retail And Wholesale Brands For Sale

California
Asking Price:
$249,000 (USD)
Sales Revenue:
$115,000 (USD)
Cash Flow:
$70,000 (USD)

This lifestyle-oriented opportunity is comprised of several highly regarded premium outerwear retail and wholesale brands, each catering to targeted B2C and B2B clients. The enterprise operates with a great deal of autonomy, as its founder has instilled processes that allow them to produce on an as needed quick-turn basis. The development, design, manufacturing, customer service, fulfillment, and sales assets in place provide an enormous amount of operational flexibility. This system was built around the company's supply chain and allows it to be managed in a highly profitable and almost entirely virtual manner regardless of sales volume. Its products are not influenced by trends which allow them to capitalize on cost efficient inventory purchases while eliminating ongoing design needs. While the retail brands are applauded, the majority of revenues are derived from custom uniform, workwear and private label jobs often with recurring revenue components.

This unique company does not have a facility lease, office space or the typical fixed overhead. Outerwear and fleece production and fulfillment occur in two states and inventory is stored in climate controlled conditions. All assets, comprised of goodwill (12k+ Facebook fans & additional social media accounts), 60+ PAD designed patterns and specialty manufacturing equipment, will be included in the sale. Approximately $47,000 in finished goods inventory will be sold at cost at close in addition to purchase price.

Property Information

Real Estate:

Lease

Business Operation

Expansion Potential:

New operators may take this opportunity in any number of directions as each of the complementary brands has several highly scalable and extraordinarily profitable paths forward. The self-funded company has never taken on debt or investment capital. Despite this, they have amassed a strong social media following and email distribution list without significant marketing or paid search engine placement. It is estimated that each email-based marketing campaign results in 60 garment orders.

New management can develop a retail sales network that includes like-minded retailers, they may reinitiate and promote direct to consumer sales channels, engage in an aggressive public relations as well as traditional print and online based marketing campaigns geared towards enthusiasts, with parallel campaigns for the promotional product, work wear and private label customer based.

The consumer-facing brand has demand for female jackets, which have been produced on demand from time to time. An opportunity also exists for female or male ski pants. The company has the necessary patterns, components and production skills on hand but has not produced pants to keep the operation simple while maintaining their incredible margin. They feel that pant margins are not as attractive as they require additional fabric and zippers.

Tremendous promotional product and work wear potential also exist. The majority of revenues are actually derived from these categories despite the company’s envied consumer facing profile. These orders are often for 20 – 60 units at time from a recurring customer base. The founder derives more satisfaction from catering to fellow hard-core and extreme sports enthusiasts, but enjoys the steady income and production efficiencies that private label and wholesale orders provide since they translate into even opportunity to enjoy the slopes and explore the backcountry.

Competition / Market:

While several majors compete in this marketplace (e.g. Columbia, North Face, Patagonia), the consumer facing brand remains a premium, edgy underground grass-roots label embraced by hardcore skiers and boarders. As a result they do not feel they compete head to head with the majors. Rather, they compete with similar small companies that cater to enthusiasts and ‘insiders’ and to a lesser degree with smaller premium brands like Arc ‘teryx.

Reasons for selling:

Personal

Employees:
1pt
Years established:
2010

Other Information

Support & training:

3 Weeks at 20 hrs/wk

Inventory / Stock value:
$47,000 (USD)

Contact Information

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