Case History: Retail Recovery
"Pop-Up" Liquidation
Beach Apparel & Gear: Waves Surf &
Sport
When financial institutions are "handed the keys" from borrowers, significant capital recovery can be generated from a "Pop-Up" sale.
Situation
After two years of design, permitting and construction, Waves Surf, and Sport was ready to launch. Unfortunately, efforts leading up to the opening had taken its toll on the owners, and after only 3 months of business, the owners decided to cease continuing operations. The bank was set to repossess the building and the inventory it housed. When Fortis Business Advisors became involved, the business had been inoperable and the building unoccupied for nine months, leading to increased costs and overhead expenses to the bank.
Objective
With the bank’s motivation to sell off the unwanted inventory, furniture, fixtures, and equipment, and prepare the property for sale, a “Pop-Up” liquidation store had to be organized. Clearance of the inventory would be accelerated by increasing visibility to both the local and tourist communities, developing heavy traffic flow to the store. In addition to selling the assets, the increased traffic flow would also enhance the image of the property as a cash flow-centric investment for a potential new owner.
Results
107.49% Return on Sales-to-Inventory Cost
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+14,000 Customer Transactions in a 14-week period
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Lines formed extending outside on multiple days
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The bank earned a substantial overall profit from the sale of the merchandise
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The exposure led the bank to enter a contract for the sale of the building
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