Operational, Financial, Market and Real Estate Assessment of Retailer that Had Been in Business Over 100 Years
This family owned grocer had experience a fairly steady decline in its revenues that had been $5 million at the peak, and asked Inglewood to assess its operations, financial strength, market position and potentially alternative uses of its real estate. Inglewood indentified that the decline in its revenues was driven by population shifts, the entrance of well funded competitors, an increasingly poor retail location, and a lack of reinvestment in the business. Further, Inglewood identified several issues with respect to the real estate and the prospect for alternative uses. The company was largely debt free, but had been considering incurring debt to re-investment in the business and cover operating losses until the business could be turned around. After reviewing Inglewood's report, especially with regard to the store's position in the competitive marketplace, the family decided to cease operations. With Inglewood's assistance, they recognized that there would not be sufficient return on any investment in the business. While it was unfortunate for the 100 year old business to close, doing so in an orderly fashion allowed the company to transition employees and kept the company from becoming insolvent.