How do I check a clothing store’s old stock before buying?

Ask for the inventory list and compare it to what is on the floor and in the back room. Look for last season’s lines, sizes that are left over, faded or damaged pieces and boxes nobody has opened. Old stock is not always a problem, but it ties up space and cash, and it may need heavy discounting to move. Check how the books record it and whether the seller has written any of it down.

Then see how it sells. Ask for sales by item or category if the system tracks it, and find out how often the store runs sales, and what happens to unsold goods. Clothing can date quickly, so ask which lines are timeless and which are tied to a trend. Look at returns, consignment arrangements and goods on loan from suppliers, since those items may not be the seller’s to sell.

Finally, agree on how it will be handled. A buyer may choose to take only current stock, take the lot at a separate agreed price, or have the seller clear the rest before closing. Hold a joint count on a set date and write down the method. Your accountant and your lawyer can help you set out the terms so there is no later argument.

Key takeaways

• Match the inventory list to the racks and storage, noting season, size and condition.
• Find out how old stock sells, and whether any goods are on consignment.
• Agree in writing how stock is counted and handled, with a joint count before closing.