How do I sell a baby or children’s clothing store?
Plan the timing around buying seasons and stock on order, document your supplier lines and repeat families, get the lease and stock records in order, and keep the sale quiet from staff and regular customers. Ask any broker whom they act for, and use your lawyer and accountant throughout.
Selling a baby or children’s clothing store is not the same as selling an online brand or a general boutique. Your trade is local, seasonal and built on families who come back, and a buyer will want to see that clearly. Preparation matters more than speed. Here is how owners usually go about it.
Timing around seasons and orders
Stock is ordered ahead of each season, so a sale that closes just after large orders arrive, or just before, raises questions about who bears them. Think about where you will be in the buying calendar, and tell your buyer what is on order. Your accountant can help you choose a closing date.
Supplier lines and repeat families
Write down which brands you carry, on what terms, and whether each supplier will deal with a new owner. Do the same for registries and repeat customers: how families find you, how often they return and what you keep on them. Ask your lawyer what you may pass on about customers.
Lease and stock records
A buyer will ask about the lease early, so read yours for what it says on assignment and renewal, and talk to your lawyer. Have stock records sorted by season and size, with consigned and layaway goods kept apart. Our page on closing stock counts explains why.
Keeping it confidential
Staff and regular families may worry if they hear about a sale, and suppliers may react. Have interested buyers sign a confidentiality agreement before sharing names or numbers, and decide who on your team learns what, and when. If you use a broker, ask whom they act for and how they are paid, as with any agent.
Related reading
10 pages on the same subject, grouped by topic.
Selling
Buying
Sources
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- 01Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 02Business Development Bank of CanadaGovernmentHow to Find the Right Buyer for Your Business
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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