What should I check before buying a craft or fabric store?

Craft, fabric and yarn stores keep a very wide range of small items. A single shelf can hold hundreds of colours, widths and brands, and much of it sells slowly. Ask who the shop depends on: teachers, regulars or both. Your checks should show which stock has sold and whether it is still saleable and which customers would stay if the owner left.

Dead stock and seasonal inventory

Ask for a stock list that shows when each item was bought. Fabric from discontinued lines, holiday goods and faded or damaged bolts can sit on the books for years. Ask how the owner treats them, and whether any clearance is planned before the sale. A joint count near closing is a reasonable request. Your accountant can advise on how it should be handled. BDC explains inventory if the terms are new to you.

Classes, workshops and the owner

Classes bring customers back and sell materials, but they rely on teachers. Find out who teaches, whether they are employees or contractors, and whether they would stay. Ask which regulars deal mainly with the owner, and whether the owner would help during a handover. Check how class deposits and unused sign-ups are handled in the records.

Suppliers and the lease

Ask which suppliers give the shop special terms or exclusive lines, and whether those terms stay with a new owner. Read the lease with your lawyer, and ask early whether the landlord will agree to a transfer. A shop of this kind often depends on its space, with room for stock, cutting tables and classes.