Weighing the Options: Should Kristen Buy a Struggling Business?

Joy M. Kozar , Sara B. Marcketti
Revised by: Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0035
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Abstract

A trendy boutique is located near a college and caters to a college-aged market in a perfect new retail space. Business has shown a decline in sales and profitability because of the young owner’s move three hours away from the store and managing it long distance. When the owner was on site, the store was successful offering new fashion that appealed to the clientele. But the last year of ownership with the absentee owner/buyer and no supervision and guidance, meant employee morale was low. In addition, local competition was offering some of the same labels at lower prices. The business was on the verge of closing when it was put up for sale. A new young entrepreneur needs to decide whether to buy this existing business which could be very risky as she would need to leave her permanent position and try to turn around this failing business.


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