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Other Retail
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Profitable Wholesale Fashion Accessories & Cosmetics Store

California, United States
Asking Price$2.60m
Revenue$5m
EBITDA-
Cash Flow$540k
Description
This is a rare opportunity to acquire a highly profitable and well-established fashion accessories and cosmetics distribution/wholesale store in the heart of Downtown Los Angeles. Operating successfully for over 14 years, the business has a loyal and diversified customer base, serving local markets, out-of-state buyers, and clients across South America. With annual sales between $5M-$6M and a net profit of $600K, this mature business benefits from strong supplier partnerships, including collaborations with high-profile brands like Fashion Nova. The business is fully stocked with inventory valued at $3M-$4M (at cost), which is included in the sale. The owner, motivated by personal reasons, is offering this turnkey opportunity at a competitive price of $2.6M (including business, FF&E, and inventory), presenting significant upside potential for growth, especially in untapped online sales channels. Investment Highlights: 1. Proven Track Record: Over 14 years of operations with stable sales and net profits. 2. Loyal Customer Base: Established relationships with local, out-of-state, and international buyers. 3. Ample Inventory: $3M-$4M (at cost) of fully paid-off inventory, including cosmetics, shapewear, false eyelashes, hats, belts, and more. 4. Strong Supplier Network: Partnerships with 40-50 suppliers, including renowned Korean cosmetic brands. 5. Prime Location: Spacious 24,000 sq. ft. (8,000 sq. ft. per floor across 3 floors) leased facility in Downtown LA. 6. Safe Operating Environment: The neighboring 24/7 trucking company ensures area security. 7. Financial Overview: Gross margins between 25%-30%, monthly expenses of ~$95K, and steady net profits. 8. Growth Opportunities: Immediate potential in online sales, direct sourcing from Chinese suppliers, and expansion into private label products. 9. Immigration Opportunity: Might be qualified for the U.S. EB-5 investment program for interested buyers, please consult with professionals. Some other notes: 1. Inventory Overview: • As per the listing, the store holds over $3 million in total inventory, including approximately $1.5 million in active inventory for regular sales. The remaining inventory largely consists of long-tail items that have already been written off and are not reflected in the official accounting records. Any recovery from this portion represents pure profit. 2. Seller Motivation and Pricing: • The owners are eager to facilitate a quick sale and are pricing the store at a discount relative to the valuation report, which estimates the store’s value at over $4.6 million. 3. Add-Back Items for owners : • Total Add-Back: $180,000/year. This add-back will significantly increase the profitability reflected in the store’s P&L, enhancing the overall value of the business. 4. In January 2025, a minor fire incident occurred in the third-floor warehouse area, damaging a small portion of long tile inventory. The first and second floors—which house the retail storefront—remained fully intact. However, due to the ongoing insurance claim process, the insurance company has restricted the store from fully reopening to the public. This has significantly impacted revenue, though the business interruption policy is expected to cover income loss. The insurer initially proposed a low settlement, which was rejected by the owner’s adjuster, and negotiations are currently ongoing. 5. The owner is currently exploring the possibility of relocating the business to a nearby location or negotiating a rent reduction with the current landlord. However, any final decision will be made after the insurance settlement is concluded.
Furniture Fixtures & Equipment
$100k
Inventory
$1.50mIncluded in Asking Price
Year Established
2010
Reason Selling
Owner Personal Reason
Facilities & Assets
Leased Facility: 3-story property with 24,000 sq. ft. of operating space. Monthly Rent: $35,000 Lease Term: Month by Month Inventory: $3M-$4M (at cost), fully paid. POS System: Proprietary system for efficient operations. Equipment: Fully equipped warehouse and operational tools to manage large wholesale orders.
Support & Training
The current owner will provide full support for a smooth transition. Training on daily operations, customer relationships, and supplier networks can be arranged for an agreed period.up to 1 Year of compensated training available
Market & Competition
*Market Position: Few competitors of this scale exist in Downtown LA, providing an immediate competitive edge. *K-Beauty Demand: Korean cosmetics remain in high demand across the U.S. and South America. *Growth Potential: Expanding into online wholesale and strengthening supplier networks can significantly boost margins.
Growth Opportunities
1. Pros: *Direct Sourcing: Shift to direct imports from Chinese suppliers to increase gross margins from 25%-30% to 30-40%. *Online Sales: Untapped e-commerce potential through independent platforms and social media * Product Line Expansion: Add private-label products or partner with emerging Korean and Chinese brands. 2. Cons: *Requires investment in digital marketing and online infrastructure for e-commerce growth. *Some slowdown in recent operations due to owner's health concerns but can recover with minimal effort.
Financing Options
Seller financing is available.
Related Categories
Other Retail Business for Sale
Business for Sale in California
Asking Price$2.60m