Businesses for Sale

Fitted Kitchen Retailer


SOLD

 

Business Opportunity

We are instructed to seek expressions of interest in the assets and goodwill of a fitted kitchen retailer.

The company operates from three showrooms all in the Northwest and in addition, has a small storage unit which is used as a depot to receive deliveries and assemble orders.

Installation is carried out by self-employed subcontract fitters.

All the vehicles are understood to be subject to leases in which equity does not accrue, with the exception of one vehicle which is subject to a hire purchase agreement.

The company does not carry stock as such, and “buys in” what is required to satisfy specific customer orders.

Historically, the company turned over circa two and a half million pounds and was operating at around break-even, but in the last year, turnover has been down, margins have reduced and the company has made significant losses (not yet calculated).

The three showrooms contain display kitchens, a significant number of which have been sold to customers and they will shortly be uplifted and installed at said customers’ houses (we understand that purchasers of display kitchens have either paid - or part-paid a significant percentage - of the selling price).

There is an order book which we are advised is in the region of £100,000 and we are further advised that in each case, customers have paid fifty percent or more of the purchase price – units and appliances for these orders have been ordered and some have now been delivered to the company’s storage unit.

The physical assets comprise: -

a)      Display kitchens – there are a total (over the three showrooms) of circa 12 display kitchens and four part-kitchens, all of which have not been sold to customers.

b)      Small quantities of upholstery, chairs, desks and office equipment.

c)      Display props e.g. crockery, vases, small hand-held kitchen equipment etc.

d)      Plant and machinery at the storage unit, namely:

 

i)                    1 off forklift truck;

ii)                  1 off panel saw;

iii)                1 off compressor, receiver and dryer;

iv)                Hand-held routers, cordless drills, etc.

The situation is exacerbated due to the company’s cash flow issues,

1)      We are advised that bailiffs acting on behalf of the landlord of one of the units have distrained upon the total contents, which include display kitchens which are assets of the company and display kitchens which have been sold to customers but not yet picked up.

2)      Bailiffs have been calling to the other showrooms although we are advised that there are no other Walking Possession Agreements.

3)      The possibility exists that suppliers may have Retention of Title claims (which may or may not be valid) in relation to showroom displays and/or goods bought in for customers.

At this stage, we are instructed to seek expressions of interest with indicative offers (offerors will not be committed by the level of their indicative offers), together with confirmation of the speed at which interested parties can act and accompanied by proof of funding.

We are seeking indicative offers for any such rights as the company may have to the physical assets, combined with goodwill/IPR.

These expressions of interest, together with proof of funding, should be forwarded to    David W Kay – david@robsonkay.co.uk - to be received no later than 12 noon on Friday 21st July 2017.

Parties expressing interest and making indicative offers (at an acceptable level) accompanied by proof of funding will be provided with additional information in due course (at which time they will be required to sign a Non-Disclosure Agreement).


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