STORE CLOSING SALES
& INVENTORY REDUCTION
"DARK-STORE" OPERATION &
Inventory and asset-driven businesses face periodic challenges caused by changing economic conditions, the online marketplace, difficulty in anticipating consumer demand, or stocking an inefficient amount and mix of high-demand merchandise or products. For many inventory-driven businesses, whether a retailer, wholesale supplier or manufacturer, it is not uncommon to discover that the root cause of performance decline is not due to operational inefficiencies, but rather inventory and asset performance challenges.
High-Impact Retail Sales Promotions
Store Viability Identification and Pare Back Strategies
Retail Exit Strategies and Store Closing Sales
Store Closing Sales and Comprehensive Inventory Liquidation and Monetization
“Dark” Business and Post-Dissolution Liquidation Strategies
Effective Guidance Strategies for Self-Liquidation and Off-Site Management
“Pop-Up” Store Liquidation Strategies and Non-Traditional Store Concept Development
Wholesale and Bulk Inventory Solutions
When asset monetization becomes necessary, many firms are aware of or only have the capability to execute conventional promotional strategies that satisfy challenges quickly, but oftentimes the results yield only pennies on the dollar. Moreover, while many of today’s asset disposition firms have historically been effective at selling surplus merchandise and assets, often their methods have not been modernized, they pass off the cost of expensive marketing plans to their clients, and when necessary, they don’t have the capability to provide operational support to facilitate the promotion. This translates into capital left on the table.
Fortis Business Advisors has the unmatched expertise that is required to address inventory challenges and execute a marketing program and promotion that combines elevating awareness of the business while turning unwanted assets into quick cash. We utilize the latest and most effective marketing and operational methods available in the world to ensure that every dollar invested in our services yields the highest achievable result. This translates into a disciplined approach that helps define and execute the strategic initiatives necessary to efficiently and effectively monetize surplus assets and inventory to drive cash flow, improve turnover rates and attract new customers, or execute comprehensive liquidation and retail exit strategies to monetize inventory and assets for the highest recovery possible.
Our clients include institutions and business owners for whom we have achieved recovery rates that exceed 85% Sales-to-Inventory Cost and increased multiples of their normal sales.
Craft & Fabric - 93.1% return
Athleisure Apparel - 96% sales-to-projections
Outdoor Apparel - 99.9% return
Ladies Apparel - 87.4% return
Electronics & Photography - 96.2% return
Surf & Sport - 107.5% return
Furniture & Interior - 92.1/% return
Art Gallery - 100.5% return
Hallmark & Gifts- 85.7% return
Jewelry - 6.3x normal sales
Garden Center - 5.0x normal sales
Craft Store - 3.8x normal sales
Diamond Center - 2.7x normal sales
Jewelry - 2.5x normal sales
Footwear - 2.4x normal sales
"Pop-Up" Liquidations & Dark Businesses
For clients facing unique challenges where keys have been surrendered, management has been dissolved and key stakeholders are facing losses too steep to write off, Fortis Business Advisors executes temporary, but highly cost-effective "Pop-Up" Liquidations and “Dark” business operations. Because the executives of Fortis Business Advisors have small business start-up, ownership and operational experience spanning multiple business verticals and industries, we have the unique ability to operate existing businesses with limited resources through a crisis. We have the resources to manage a “dark” business prior to selling as a going concern or reopen a business to liquidate inventory assets when recovery is necessary to offset losses.
In extreme situations when assets and inventory are offsite or conventional liquidation strategies are too expensive, Fortis Business Advisors will effectively identify and operate unique “Pop-Up” liquidation locations. We set-up the operation, manage logistics to acquire the inventory assets, merchandise the inventory assets, execute a short-term strategic marketing platform, and maintain sales and weekly operations for the duration of the event.
Financial Institutions seeking operational support during a crisis to support selling the business as a going concern, of if liquidation is necessary, seek strategies for higher recovery rates on repossessed inventory assets
Trustees, Turnaround and Professional Services Advisors involved in the wind-down or dissolution of a small business that requires on-site support or the monetization of remaining inventory assets
Receivers and Fiduciaries seeking alternative strategies prior to selling a business as a going concern, or for generating recovery and monetizing assets, particularly to avoid bankruptcy
"Pop-Up" Liquidations: An Evolution in Effective Inventory Monetization
Temporary, but highly cost-effective "Pop-Up" retail liquidations are an effective alternative to monetize inventory with sales-to-inventory cost returns of 90% - 110% and net recovery returns ranging from $.35-$.50 on the inventory cost dollar - higher returns than typical quick-fix liquidation strategies.
Business owners seeking liquidation strategies when operational expenses will negatively affect the monetization return, when rapid location pare backs are a necessity, or when additional locations will subordinate a liquidation strategy
Proactive leaders seeking alternative channels to liquidate inventory assets outside of a conventional Going-Out-of-Business marketing platform.
Retail Exit Strategy
Fabric & Craft:
Single-store retailers can generate significant cash flow and recovery from liquidating in an Assignment for the Benefit of Creditors even after the business has gone "dark" and management has been dissolved.
Apparel: Kit & Ace @ NamasDay Sportswear
Unsecured creditors involved in a retailer's Assignment for the Benefit of Creditors' case can generate recovery and lost capital through alternative monetization strategies.
Retail Exit Strategy
Apparel: The North Face at KL Mountain
When financial institutions are "handed the keys" from borrowers walking away from inventory, significant capital recovery can be generated from selling the inventory in a retail store with operational support.