This successful DIY textiles wholesaler in SE Melbourne was established over 25 years ago and only sells to boutique retailers. There is a large range of products, including business-owned brands, for a national network of contract sales managers to promote.
Sales are usually in the range of $5m but were as high as $6.5m during COVID. Products are sold nationally as well as some overseas sales. With lean stock control management of approx $750k SAV, there is a very low direct reliance on China.
The business has equipment and software worth over $400k. A premise sale is optional at market value (approx $8.5m in early 2025) or flexible lease options. An inspection will impress.
The ve2ndor is genuinely ready for retirement. Handover can be negotiated but not vendor finance or an earn-out. The business has a senior staff member who can take over the vendor's role, supported by all full-time staff having tenure over five years.
There is room for growth if you have supply connections across Asia including India and the surrounding region. The business has been exporting for a long time and does have some innovative solutions and item packages on offer for export promotion. There is sales growth potential overseas through sales agents or distributors.
Locally, the business could introduce competing branded product lines to target large retailers like Spotlight, Officeworks, Bunnings, and Lincraft without reducing the advantage of smaller boutique DIY retailers with existing product lines. More could be done to sell competing lines with online sales. A long-arm sewing machine could assist increase the product lines on offer.
Overall, this business could be a great acquisition opportunity or used as a starting point to wholesale other textile products you have in mind.
For further information, please contact us for an NDA and a quick discussion.
