Our client is a clicks-and-mortar aspirational menswear brand and retailers whose primary base in in the North East of England. Opened in September 2021, the company looks set to achieve a 55% increase in FY revenues in its second year.
In its first year, the company has demonstrated remarkable financial performance, with high gross margins and net margins. The strong financial results indicate both an underserved market and the success of the lines chosen to sell to the target market.
The business currently operates from two prime retail locations, one in a major city centre and the other in a bustling market town. Both locations are strategically positioned near major high street brands and transportation hubs, ensuring high foot traffic and visibility. There is significant potential for growth by expanding the number of retail outlets to areas which lack a retail outlet like this. Geographical footprint expansion plus investment in the company’s website give a new owner the opportunity to increase revenue and profitability, much of which could be paid for direct from current cash flows.
Range of products
HOUSE OF S&S ATTIRE LIMITED is a menswear retail brand that offers a diverse range of clothing and accessories to cater to the needs of its customers.
The company stocks a variety of brands, each with its unique offerings, to provide a comprehensive shopping experience for those seeking high-quality and stylish menswear.
The company works with 11 brands to ensure that customers have access to a wide range of options to suit their preferences and requirements.
Those brands are:
Marc Darcy: sophisticated and stylish suits, ideal for formal occasions and events.
Cavani: fashionable menswear, including suits, blazers, and trousers.
L A Smith: ties and shirts, high-quality and stylish accessories to complement their outfits.
Swole Panda: environmentally-friend, comfortable and stylish socks made from bamboo.
Charles Grey Menswear- Suit brand new to the market, owned and designed by the owners of S&S but wholesale to other stores.
Skopes: premium suits, outerwear, trousers and accessories in contemporary styles, fits, and sizes, including big and tall suits with chest sizes up to 62”.
Farah: quality, stylish menswear and accessories in a variety of fabrics and designs.
Casual Friday & Blend 2 casual wear companies under one umbrella.
FQ1924- New brand to the store, a sophisticated mens casual wear brand, contemporary designs with a luxury feel
S&S Attire- Recently invested into our own accessories manufacturing in a trusted factory in China.
95% of sales are made in-store with the remainder from online sales. Our client enjoys favourable stocking and payment terms with its suppliers. This is a great help in managing cash flow. Many also offer to swap under-performing lines with replacements free of charge.
Staffing and decision-making
There are two shareholding directors in the business. Both are full-time educational professionals and neither work in the retail shops. They are in charge of all strategic and major financial decisions in the business. They also negotiate deals with brands and wholesalers and decide, primarily through data analysis and rep recommendation, which lines to stock. They are arms-length directors spending generally a maximum of 20 hours per week on the business.
The other senior person in the business manages both shops. She opens the shops up, oversees all staff, responsible for reporting to director that new stock needs ordering and is responsible for inventory maintenance. The shop accepts both cash and card and goes to the bank to pay money. She has been with the company for 8 months and is currently being trained to take on more responsibilities. She is paid £26,000 per annum with no performance bonus.
There are four other staff. There are three senior staff members; 2 full-time supervisor and 2 part-time sales assistants. There is also a younger part-time member of staff who works as a sales assistant at weekends.
To follow up
Our client offers an exceptional opportunity to acquire an aspirational menswear brand and retailer with a strong foothold in the North East of England. Since its inception in September 2021, the company has shown remarkable financial performance and is projected to achieve a 55% increase in FY revenues in its second year. Operating from two prime retail locations in Newcastle city centre and a bustling market town, both sites are strategically positioned for high foot traffic and visibility.
Significant growth potential exists by expanding the retail outlets to underserved areas and investing in the company’s website, which can be funded from the current cash flows. This expansion, coupled with a strong online presence, allows a new owner to increase revenue and profitability. This thriving menswear business presents an outstanding opportunity for a new owner to acquire a company with a strong foundation, impressive financial performance, and vast growth potential.
To further your enquiry, please contact Swan Corporate Brokers and request an NDA for this business.
