Hawaii Retail Furniture Store - SBA Approved

This long-tenured, well known and regarded, profitable Hawaii based retail furniture store is for sale due to the pending retirement of the owners.

In 2024 they had annual sales of $1.5 million which generated $366,140 of owner’s profits (“SDE”). This performance was based on them being open only 5 days per week, closed most holidays, and closed when the owners took vacation. Their focus is on the mid-priced retail furniture market, and their customers include home and condo owners and short-term vacation rental owners. Future sales prospects are excellent due to market conditions. They have exclusive US based vendor relationships which provide them with a secure product supply at modest cost.
All assets including a very saleable and current Inventory of Goods to sell, excellent leases, all required furniture and fixtures, excellent training by the current owners, and a 5-year non-compete agreement are included in the sale.
INVESTMENT HIGHLIGHTS
• The U.S. retail furniture industry is a multi-billion-dollar sector, with estimates for 2023 putting its total market value around $120–130 billion; one of the US’s largest markets.
• Their local market is vibrant, and future demand is expected to be robust.
• Rather than letting the logistics of shipping furniture to Hawaii become a challenge, they decided to turn it into an opportunity. People in Hawaii were unable to get furniture there by themselves at a reasonable price due to the shipping constraints and costs. So the Company made their brick and mortar store a place for easy and reasonably priced furniture accessibility with full container load freight rates.
• Excellent Vendor Relationships. One of the Company’s major strengths is their long-tenured and strong domestically located vendor base.
• Strong Cash Position and No Accounts Receivable & Credit Risk. Because they collect a 50% customer deposit for orders that will need to be shipped from the mainland, and they are paid 100% primarily by credit card for products sold from stock, they are able to maintain a zero investment in accounts receivable and no credit risk.
• No Customer Concentration. They had over 500 customers in 2024, with an average sale of $1,941 per customer.
• SBA Financing. Gulf Coast Small Business Lending has offered a qualified buyer a pre-qualification Letter for an SBA 7(a) acquisition loan, with the following details:

Loan Amount: up to $744,000, based on an Inventory amount at Closing of $250,000 (will vary with closing Inventory amount).
Loan Term: 120 months (10 years), fully amortizing (a line of credit may also be available for additional working capital
Interest Rate: A Floating rate adjusted quarterly. The rates will be quoted with qualified applicant’s information.
Payment: Initial monthly payments in the amount of approx. $9,627.18.
OFFERING SUMMARY
Asking Price: $575,000 Plus the cost-based value of Inventory at Closing. Their Inventory target at Closing is $150,000, and at this level, the final sale price will be $725,000 ($575,000 + $150,000).
Gross Depreciable Assets (F,F&E): $46,237 (source: 2024 tax return) Non-Compete: 5 years on the Island.
Training: 2 weeks; 30 hrs./wk. Sale Reason: Retirement

The Seller is only accepting offers from buyers with retail experience because of landlord requirements.