How do I judge the value of bolts and remnants in a fabric store’s stock?
Look at condition, age and how fast each line sells, not at the number on the books. Check full bolts for fading, fold marks and damage, and ask how remnants are priced and cleared. Slow lines and cut-down ends usually hold less usable stock than they appear.
Fabric stock changes character as it is sold. A full bolt can be cut into sellable lengths, but the end left on the roll shrinks into a remnant that moves slowly. Ask the seller how remnants are priced, how long they sit and what happens to the smallest pieces.
Inspect the stock yourself. Pull bolts from the back and look for sun fading along the fold, water marks, dust, moth damage and creases that will not press out. Check that the label matches the cloth and that you can see the maker’s name. Fashion fabrics date quickly, while basics sell steadily, so ask which lines are which.
Ask for a stock listing with receiving dates and last-sold dates, and compare it to what you find on the shelves. Notice how much of the room is slow, seasonal or special order. Your accountant can help you decide how the books treat aged stock. Do not rely on the seller’s total for stock without a count, and agree how the count will be done before closing. Ask also how many bolts are special orders for sewing groups, since those customers may buy a lot or very little after the change.
Key takeaways
- Judge condition and sales speed before reading any book total.
- Look at fold lines, fading, damp marks and moth damage on older bolts.
- Ask how remnants are priced and cleared.
- Agree on a stock count method before closing.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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