Closing up- Looking for Exit Strategy Tips

[26.2MilesforPizza]

So, things haven’t been going well since I opened and the truth is, they probably won’t for a long time (if ever). I already have most of my exit strategy thought out but wanted to post as I’m sure you all will give me some new things to think about. Here’s a few key points.

I’ve owned this place for 15 months.
Lease is up 07/01/2012
Current sales are up to 2200 per week. Take out Delivery only
Cash flow is 0 with 0 manager/owner salary
Only 2 part time employees. Labor is less than 40 hours per week.
I work 70 hours per week and am by myself most days until 4:30 when I have a driver come in.
With the sales where they are, I can’t imagine someone wanting to buy this as a business.

My current plan is to close up and liquidate my assets. Will closing up one month prior to 07/01 give me enough time to clear this place out and get rid of everything? I was hoping to peddle as much on Ebay/ Craigslist as possible and then contacting an auction company to help me get rid of everything else. Most of my equipment is at least 10 years old and in good working condition.

Any other thought would be greatly appreciated.

 

[royster13]

It is a tough bullet to take…

Have you tried listing it for sale as is?..This may allow you to stay open until the last day and be less work than selling everything off piece meal…

Good luck…

 

[brad_randall]

26.2MilesforPizza:

With the sales where they are, I can’t imagine someone wanting to buy this as a business.

Don’t undervalue a turn-key operation with a dash of goodwill thrown in. Especially in the case of a restaurant, you can often get more for the whole package than you can parting out used equipment.

 

[Jeff_Ward]

I’m 100% with Brad. I was faced with the same reality 10 years ago because of a huge battle with my partner. Revenue situation was almost an exact duplicate of yours. What could have been a $30,000 sale of a turnkey operation ended up as a $13,000 equipment liquidation.

Sell the business.

 

[George_Mills]

Hi 25.2

You say you have been in business for 15 months but your equipment is 10 years old?

Did you buy a going business?

George Mills

 

[NYtosser]

Look for a foreign buyer and sell it as a turnkey business. Chinese; Thai; Indian… and yes I am serious. May need to do a few rearrangments/lose some ovens; don’t pigeon-hole it into soley a pizza shop.

 

[eupher61]

George…ever hear of someone buying used equipment??? 8)

 

[26.2MilesforPizza]

George Mills:

Hi 25.2

You say you have been in business for 15 months but your equipment is 10 years old?

Did you buy a going business?

George Mills

Yup. The store I’m in has been going through owners pretty regularly. It was a franchise for about 10 years. A family bought it 2 years before me, changed the name, then sold it to me. They sold it to me with the contingency that I change the name (since it was named after their family).

The good news is that I was able to buy everything for $25K so I won’t be out too much regardless of what happens. The bad news is, even though its turnkey, this place has a been a revolving door for pizza stores. Which will definitely hurt the sale price.