P.O.S.H. a Chicago Icon for Sale

“At some point in your life, you want something that feels authentic — something that speaks to you.” P.O.S.H. was founded in 1997; and, from the very beginning, P.O.S.H. has garnered media attention from all corners: from a recent “Sip With Me” podcast this past December to an article in Country Living magazine just a couple months after opening, to a brief segment on the Oprah Winfrey show, to shop profiles in Architectural Digest, The Telegraph of London's magazine "Luxury", USA Today, House Beautiful, Real Simple, and O at Home (Oprah's home magazine), just to name but a few. (And since we're dropping names, we might as well include Martha Stewart who stops in when she's in town and refers to P.O.S.H. as her "favorite shop in Chicago"!).

They have developed a product mix that truly captivates a broad audience of all ages and all economic levels. It is the skillful blending of both vintage and antique pieces, along with newly manufactured items, that gives the shop its unique character. The shop has set a standard for beautiful merchandising (store display) that captivates shoppers and visually transports them to another place and time. (A visit to the shop has even been on the curriculum for visual merchandising students at Columbia College.) In addition to the brick & mortar location, they also have a busy online shop.

Total Sales: $1,800,000

Cash Flow: $416,000

EBITDA: $325,000

FFE: $50,000

FFE Included: Yes

Inventory: $250,000

Inventory Included: Yes

Year Established: 1997

Days & Hours of Operation: 10am-6pm Mon-Sat, 11am-5pm Sun

Non-Owner Payroll: $300,000

Managers: 1

Absentee Owner: No

Security on Lease: Yes

Lease Option: One 5 year renewal option

Real Estate Included: No

Monthly Rent: N/A

Type of Location: Retail Store

Square Footage: 1660

Franchise: No

Relocatable: Yes

Facilities Information:

P.O.S.H. is located in the River North neighborhood of downtown Chicago. For the past 16 years, the shop has been in the historic Tree Studios building. Listed on the National Register of Historic Places, the Tree Studios building is home to the “oldest known artist studios in the country”. Built in the late 1800s and designed around an interior, landscaped courtyard, there is a lot of synergy between the building’s aesthetic and that of P.O.S.H.

The shop’s sales floor is approximately 1,060 square feet with an additional 600 square foot basement that is used for inventory back stock, office space and shipping for web sales.

Reason For Sale:

After 25+ years, the owners desire to begin a new life chapter: a different pace of life, and to spend more time traveling.

Training & Support:

The owners are both willing to assist during a transition period. One year would probably be sufficient to understand the business through all the seasons.

Owner Qualifications:

The successful owner of any small business must be prepared to “wear many hats”. Rolling up your sleeves and getting to work on whatever task is at hand is essential. This is certainly true at P.O.S.H. where the owners are just as likely to be taking the trash out at the end of the day, as is the newest part-time employee.

Competition:

Overall, no direct competition. There may be competition for certain lines of merchandise with online retailers and on a very limited scale, eBay and Etsy may be competition in the antiques market.

Potential Growth:

P.O.S.H. has many potential avenues for future growth. Based on online sales demographics, there is a strong interest in what the shop offers throughout the country. On a national scale, the business could be successfully replicated in other large cities around the country. The owners consistently hear from out-of-town visitors saying, “You should open a P.O.S.H. in (fill in the name of their hometown).” Over the years, they have also been approached to consider franchising the brand and opening additional shops in other markets.
The storefront directly next door to P.O.S.H. is currently occupied by a 6-month pop-up shop, but would be available for a long-term lease. Securing the neighboring space would be an opportunity to double the shop’s square footage and not only expand its current offerings but also add a complimentary business, such as a European style tearoom.
In addition to expanding the brick & mortar side of the business, focusing on the shop’s existing website would be a relatively easy, low-cost avenue for growth.

Financing/Terms:

Open/flexible to different financing and deal structures for the appropriate purchase price.