Informal negotiations.
Ever walk past a store in your local shopping centre and just
wonder how they are surviving? In recent times, we are seeing more
and more retailers suffering financial hardship with no realistic
exit strategy.
A recent matter undertaken by our Worrells Gold Coast office
dealt with a company operating a sunglasses retail store that had
traded on the coast for over twenty years. Over time, sales
continued to decrease, as the company's suppliers had all set
up their own online stores, marketing the same products at much
lower prices—and sold exclusive seasonal products only
available through their online stores.
Prior to seeing Worrells, the company director tried to compete,
from continual sales campaigns, becoming the sole employee, to the
director selling his home to help support the businesses cash flow.
However, the sales revenue, cutting overheads, and injecting
further capital didn't solve the company's financial
woes.
