How do I check whether a fabric store’s costume and theatre customers will stay?

Ask for the order history of the largest costume, theatre and school accounts. Look at whether they buy every season or in occasional bursts, and whether they are tied to a single production or a standing relationship. A customer who orders for one show a year is different from one who reorders every month.

Then ask how those relationships work. Costume designers and drama teachers often value advice on fabric, trims and quantities, not only price. If the owner provides that advice personally, find out how it can be passed on. A joint visit or a call during the transition, arranged with the seller, can help.

Check the stock behind the accounts as well: bolts held for regular customers, special orders, and any amounts owed to the shop. Ask the seller to agree in writing on a handover period, and have your lawyer look at how that is set out in the purchase agreement. If possible, call two or three of those customers yourself, with the seller’s agreement, and ask what keeps them coming back. Ask the seller how long each relationship has lasted and whether any of them has ever threatened to go elsewhere.

Key takeaways

• Review order history by account and ask how often each one reorders.
• Find out whether customers rely on the shop or on the owner.
• Arrange introductions during the handover period.
• Speak with a few of the larger accounts yourself before closing.