Should I keep ordering next season’s stock while my boutique is for sale?
Keep the shop credible, but avoid commitments a buyer may not want. Weigh what the store needs to keep trading against the commitment an order creates, tell serious buyers what is on order, and consider offering a say over larger or later orders. Unexplained pre-bookings can complicate a sale as much as an empty rail can.
Buying events for next season fall when many owners are also trying to sell. You need a full shop to keep customers and to show buyers a working business. You also do not want to leave a buyer holding orders they never chose. The way through is to decide in advance how much you will commit, and to be open about it.
Keep the shop trading
A thin or stale shop tells buyers the business is winding down. Buyers tend to see a consistent reordering routine as easier to judge than a sudden stop or a dramatic change. The decision stays with the owner, your lawyer and your accountant.
Tell buyers what is on order
Keep a simple list of open orders, delivery dates and supplier terms, and be ready to share it under a confidentiality agreement. Check whether orders can be cancelled or moved to a new owner, and whether a supplier would want to approve the change. Open orders that surface late can complicate a sale, so keep the list current and ask each supplier what its terms allow if the business changes hands.
Let the buyer have a say
Once a buyer is serious, consider asking before placing large or late-season orders, and agree in writing who bears the risk if the sale does not close. Your lawyer can draft that into the agreement. Our guide to selling a clothing boutique shows how to prepare current stock for buyers.
Related reading
15 pages on the same subject, grouped by topic.
Selling
Buying
- GuideBuying a clothing boutique in Canada
- ComparisonBuying a franchise vs an independent business
- Expert answerWhat should I do in the first season after buying an ice cream shop?
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Legal
Valuation
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 03Canada Revenue AgencyGovernmentSelling a business
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