SB360 Case Study
Footwear
One of North America’s largest retailers of branded footwear and accessories had a problem. As the competitive landscape for mid-luxury, mall-based footwear shifted, one of its Canadian banners consistently experienced comparable sales declines that hurt the performance of its overall Canadian operation. The company wanted to refocus its investment on its larger subsidiaries.
After an extensive review of the stores and cross-platform implications, the company decided to exit the affected banner, closing the retail locations and the eCommerce store. Planning to redirect its human capital as quickly as possible, the company began exploring options to outsource the closing process. The company realized it needed a partner that had the relationships, experience, and marketing capabilities to deliver results.
The Solution:
SB360 had extensive footwear expertise and had previously closed the Canadian operations of another footwear retailer. We offered a multi-asset, multi-channel disposition solution to efficiently wind down the business with sensitivity to the complex demands of the sister banners. We seamlessly assumed operational control, providing store and merchandising support and overseeing merchandising for the eCommerce store. Our complete suite of services included designing a fully customized sign package and delivering all creative content for the stores, eCommerce, and email marketing platforms. The SB360 plan factored in: a sale term based on the amount of inventory, the number of stores, and a projection of the percentage of business to be conducted via eCommerce; an effective promotional cadence and marketing campaign to bring shoppers into the stores and keep them coming back; and a sales multiple that would achieve the maximum recovery value. Our plan required aggressive in-store merchandising, strategic discounting and price point promotions, and employee incentive initiatives.
SB360 Capital Partners delivers results.
We monetized $52 million in retail inventory and sold the furniture, fixtures, and equipment across all 30 stores. The increased foot traffic during the sale created an opportunity for the company to move excess inventory from foreign affiliates through the liquidating stores at a higher recovery than historical channels. Sale proceeds exceeded the company’s desired recovery value and easily covered all store and eCommerce operating expenses.
The eCommerce site shut down on schedule, and the stores closed as planned within the time frames negotiated in the company’s lease termination agreements. Our collaboration with the company allowed corporate and eCommerce associates to transition to other banners within two weeks of our start date. This support allowed the company to focus on its business strategy and objectives and look to the future growth of its larger brands.
Our Work
SB360 Capital Partners delivers innovative solutions that enable companies to navigate complex business challenges. We’ve worked with hundreds of businesses to manage change, restructure assets, restore profitability, and unlock new liquidity from underperforming assets.
Minimize the risk. Maximize the recovery.
SB360 Capital Partners
SB360 delivers a full spectrum of services to retailers, wholesalers, and manufacturers of all sizes. We offer timely, flexible, and creative solutions inspired and developed by seasoned retailers and merchants. Our principals and merchants have managed thousands of stores and billions of dollars in wholesale and retail inventory.
As the company that defined asset value maximization, SB360 remains at the forefront of the industry, delivering innovative solutions that help companies navigate complex business challenges. We’ve worked with hundreds of businesses to manage change, restructure assets, restore profitability, and unlock new liquidity from underperforming assets – and we’ve done it more effectively than anyone else.