High End Custom Skate Shop in Bloomfield Hills, MI

Bloomfield Hills, MI (Oakland County)

High End Custom Skate Shop in Bloomfield Hills, MI

Asking Price:$297,000

Cash Flow:$173,000

Gross Revenue:$605,000





*not included in asking price.

High End Custom Skate Shop in Bloomfield Hills, MI

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Business Description

Jones Custom Skate Shop has a unique advantage…it resides inside of a premier ice skating facility, the Detroit Skating Club, located in upscale Bloomfield Hills, Michigan, thereby providing it with a captive buying audience of affluent customers. Since 1989 the owner-seller has provided figure skates, competition outfits, accessories, and service to hundreds of aspiring young skaters. The business has had a successful 26 year run, but now it’s time to retire and sell the business to a new owner-operator.

Situated in a 900 square foot leased space between rinks A and B, the business employs some eight part-time college age students, most of whom are former customers. Rent is very favorable, amounting to less than 5% of 2015 revenues. The business is open an owner-operator friendly 47 hours a week, with an additional five hours during peak season.

Jones Custom Skate Shop boasts a number of revenue streams: (1) sales of new (mostly) and used figure skates; (2) sales of skating outfits and accessories; (3) skate sharpening; and (4) skate rental. Hockey is a relatively new sport featured at the Skating Club, and Jones Custom Skate Shop has yet to cultivate sales to that new and potentially lucrative customer base.

The reputation of the business is so strong that a steady flow of new customers arrive year after year without the benefit of any meaningful sales or marketing efforts. The business has a deserved wonderful reputation for both its integrity and great customer service, so much so that it has never even bothered to develop its own website.

Competition is scarce, with only two other shops in the Detroit metro area that sells figure skates in the more upscale categories, and one of those is located in Windsor (Canada).

Annual revenues consistently exceed $550,000, with an impressive $605,000 recorded in 2015. SDE (the normalized cash flow available to pay an owner-operator and service debt) was an impressive $173,000 in 2015. The business is being offered for $297,000 in an asset sale which has the seller retaining cash and A/R, while retiring all liabilities. Inventory, primarily skates, outfits and accessories, (approximately $70,000 as of December 31, 2015) is additional while all fixed assets are included in the attractive $297,000 listing price (a highly favorable 1.7x 2015 SDE). In addition, the seller will offer ample transition training.

For more information on this cash-flowing and niche retail business opportunity, please contact Steve Kandt (steve@praxisbb.com).

Detailed Information

Not included in asking price
900 sf. located inside of the Detroit Skating Club facility in Bloomfield Hills, MI.
Support & Training:
Owner will provide 2 weeks training and transition.
Reason for Selling:

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Michael Greengard

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Michael Greengard

Praxis Business Brokers

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