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Wow! How far do you live from there Wyatt?

Looks like a too good to be true deal, other than him not having the Acid's quarnteened.
 
Damn, too bad I don't live remotely close or I'd think about it, LOL.
 
The Tinderbox that closed here wanted $250,000 plus inventory, another $300,000 to $400,000 in inventory before they just decided to close. It was doing $1.3 million a year in sales though.
 
I don't sell cigarettes or "glass pipes" even though I get requests constantly.

Where's George?
 
KayakinBoy said:
Yeahthatsme said:
oh man...if only I had 30k burning a whole in my pocket.
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You mean hole? :D :sign:

Nice looking shop, sad inventory... I bet you could turn it around, but that also depends on the town and the locals...
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lol thanks for the heads up.


I noticed the inventory as well, they have more acid than I've ever seen in a store before :(.
 
What is the current state of anti-smoking legislation in that city, county or state?

Who the hell sets up a retail establishment because they need an office? sniff snif,,,, is that tuna?

What were the gross/net earnings in the last 5 years? I want to see the books.

Is the lease in your name or the shops name?


Still might be a great deal, but there are a lot of questions that need answers.
 
Anyone who thinks there's not a reason he's dumping and running for the bargain price of less than $30K is kidding himself. I like the way he states its profitable yet the only thing he gives any detail about is the fixtures.

If anyone gets a wild hair do yourself a favor and ask him to see his books over the years.
 
I used to do a lot of fishing in that area, now it's gentrifying and the place is getting crowded. Don't have a horse in this race, just stating facts. Now i go out of state to fish. :angry:
 
Well, the fixtures are not really worth that. They've depreciated through use. The recoverable value is probably next to nothing, since (as I understand it) cigar stores are not exactly popping up all over the place. Assume a value of zero, or less than zero, for the store (in order to repay liens).

Likewise, "going out of business" businesses tend to liquidate inventory. No doubt he's already done so. The inventory valuation is probably well off, and the real value is going to continue to drop until the store is sold. Since he's decided to go out of business, he probably hasn't re-ordered (why would he?) from his wholesale suppliers, which means that you get a store full of slow movers and a need to replenish inventory to a significant tune.

Finally, the lease may be up or increasing dramatically (hard to imagine in the middle of a recession, but four stores in Swarthmore's 1-block downtown were just forced out). And the market might be falling, say because of antismoking bylaws. You also don't have his side businesses to create non-cigar cashflow through the use of the office space.

You could probably come up with a better turnkey offer once you look at his real-live balance sheet, which should list the depreciated value of assets. Likewise, you're going to have to talk to his banker beforehand, so do so early. Etcetera.
 
mmburtch said:
What is the current state of anti-smoking legislation in that city, county or state?
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In Illinois currently you aren't allowed to smoke in a building unless it's a private residence, private club, or a store which makes 75% or more of it's income from tobacco or related products, from what I understand.
 
I think it's weird he states he buys cigars from "third parties" and not direct from the manufacturer... ???
 
I'd be surprised if some of the big mail-order houses didn't accept wholesale accounts. It's probably a good way to get around minimum purchases (or volume pricing rules) from each individual manufacturer.
 
I'd say that for someone looking to get into the business, the place has potential. I'd do a ton of research first, but the storefront looks like you could change it into a cigar lounge kind of area readily by adding some leather couches, ashtrays, and a smoke eater or two.

Add in a decent rack of cigarettes in the back to keep inventory moving, and I think the place could work out for someone.

Unfortunately, I'm in California and don't have $30k available to me. Hell, I'd probably have to pay $60k to the bank to get out of this house.
 
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