Case History: Retail Exit Strategy
Custom-built strategies designed to liquidate individually-owned and low-inventory retailers can generate significant recovery.
Situated in the Wellesley and Andover suburbs of Boston, MA were two independently owned boutiques selling high-end designer and contemporary ladies’ apparel, shoes, jewelry and handbags. What started as successful “pop-ups” evolved into the Andover location which successfully operated for several years before the expansion into the Wellesley location less than a year ago. When gas fires struck Andover, the business suffered an irreparable downturn, and due to landlord and build-out delays, the strategically planned launch date of the Wellesley location was postponed. The Wellesley location ultimately opened, but by opening day cash flow was already strained. As the situation proceeded to get worse, ownership determined it was time to cut losses and liquidate the inventory and assets. When Fortis Business Advisors became involved, to save expenses it was recommended that the merchandise be consolidated into one location.
Generate cash flow. The business had already taken steep discounts and initiated their own sale strategies prior to the start of the liquidation. Knowing that a conventional liquidation program may prove ineffective and expensive given the inventory levels and out-of-season merchandise, Fortis modified the program to begin the liquidation at a higher markdown level with a shorter timeframe for further reductions. Also, in order to further minimize expenses, the current staff was retained to conduct operations while Fortis implemented and guided the high-impact sale strategy.
7.4% Return on Gross Sales-to-Inventory Cost
Over 98.6% of the merchandise and fixtures successfully monetized
Delivery of a clean and lease-ready space upon completion of the event