What happens when a bead store goes out of business?

brians34 wrote

on Nov 26, 2012 12:51 AM

I'm curious as to what a bead store would do with all the remaining stock they'd have when they finally decide to retire or call it quits?

After all the sales 50 to 75% off, there would still be stock left.  What happens with that stock?

SEllen 2 wrote

on Nov 27, 2012 11:55 AM

Just bumping up to get spammer off the top of the page.

D.M.Z wrote

on Nov 27, 2012 12:50 PM

Brian, LOL, at 50 to 75 percent off, should there be anything left of value? Saying there was, if it was me, I'd be looking for another store in the area and offer them a whale of a deal on the remainder. It would probably have to be a really really good deal because most likely other stores are not doing spectacularly either and what would be left would be dregs.

I have had this happen recently with an antique mall showcase that I rented to sell things for my brother, all the "good" stuff went in the first few months and dribs and drabs since then. Now I have left cute little crafty pins and holiday pins and other non-popular items. I'll be glad to get rid of them for almost nothing....... so I think that would be how it goes with beads also.

So any remainder, going cheap, would probably not be the best investment to make until you had the time and education in bead things to really look it over. That's my take on it anyway. If the store owner has a note to pay on, they might have to get too much for the remainders and then it wouldn't be worth it at all. Hope this helps answer your question. Donna

SCB1 wrote

on Nov 28, 2012 2:29 PM

I work at my local bead store, and in the past, we have had several other local bead stores go suddenly out of business, but before closing the doors for the final time, they called other area bead stores and offer to sell them their remaining stock. And Donna is correct, sometimes the pickings are meager. Sometimes the owners although are no longer wanting to do business, are still beaders themselves, and  want to keep the good stuff for their private stash. After all they were able to buy at a good wholesale price when they bought the stuff and they may not be willing to give these goodies up.

beadinstyle wrote

on Nov 28, 2012 2:31 PM

From what I have seen ... markets and ebay. If another store wants a bargain, they need to jump in early to snaffle the good stuff before it goes, and that might mean paying a little more. 

Ruth

brians34 wrote

on Nov 28, 2012 3:05 PM

That's what I was just getting from a bead store that I found going out of business.

They marked practically everything at 50% off and said a couple of the local bead shops were going to take some.  They said whatever is left after all is done, they are going to send to auction.

Thanks for the replies and helping with my curiosity.

DebWAZ wrote

on Jan 18, 2013 4:20 PM

brians34:

That's what I was just getting from a bead store that I found going out of business.

They marked practically everything at 50% off and said a couple of the local bead shops were going to take some.  They said whatever is left after all is done, they are going to send to auction.

Thanks for the replies and helping with my curiosity.

Brian,

Having just closed our store, I can somewhat answer this. We closed due to my husband's health issues - doctor's orders. Your comment sounds a lot like my story, to a certain point.

By the end, we had reduced prices 50 - 75%. We still had/have "good stuff" left over. One factor that may differentiate us from other LBS that have closed over the past couple of years is that we own every single thing and don't owe a cent to anyone on it. I guess what we have left are "dregs", if you call Delicas, Swarovski, AA grade stone, freshwater pearls, etc. "dregs". 

A local store approached us to buy "everything you have left after you close." Because they didn't have room in their store for our inventory when we began our store closing, they said, "sell what you can and we'll buy the rest." They even told "everyone in town" that they were going to get all of our final inventory! I had customers come in and TELL me I was selling to the other store. Exact numbers were to be discussed after our last day in business. They also wanted our POS system - computer, cash drawer, scanner, POS software, labeling equipment, UPC software, etc. They ABSOLUTELY had to have it, until we quoted a price. Then it was, "we can't afford that, we're not big enough to do that (convert to UPC)," [wondering to self why they thought they NEEDED the POS in the first place, if they aren't "big enough" to use it?]. So, the POS system wasn't sold.

Then, we quoted a price for "everything we have left" - including Delicas, Swarovski, good quality stone, Preciosa, Czech seed beads, bugles, tools, findings etc. The response was, "That's a good price, but we don't have anything for a down payment and we'd have to pay you over the course of the winter." I do understand that people might not have a lump of cash to buy that kind of inventory, but I'm not giving them inventory that they may not pay for, especially if the season turns out slower than they expect.

SO - since one of my instructors was supposed to start teaching classes for them "right away", we suggested an alternative so she could teach classes. They said "we have $XX in cash, how about if we get what's needed so she can start classes?". We broke out everything from the inventory totals that the instructor uses in her classes, knocked a little extra off the total to come up with what they SAID they had in cash! Took the list over to settle the deal and were told, "Gee, we don't have that in cash right now. It will have to wait until we get some $$." It's been over a month and we're still waiting. Something tells me that we probably shouldn't wait any more. <sigh>

Don't even get me started on the other 2 that were so full of big talk. "We'll buy it all - no problem", even after Mike gave them a high, off the cuff estimate. When it came down to making deals, I'll just say that "money talks, BS walks." and there was a lot of walking, and very little talking.

We moved the inventory into our garage (anyone got a wall stretcher?), where it will sit until we decide what to do with it. We might list it on craigslist, we might send it to auction, I might sell it online (etsy or artfire) or I might just turn it into my private stash for making and selling jewelry. (Imagine having a private stash of several thousand tubes of Delicas and kilos of pearls! LOL) As I said before, it's all paid for and I don't have to give it away.

So - that's what happens when a bead store closes. I know of another store that owed paychecks to employees and paid them with inventory because they didn't have cash to pay them.

Brian, if you are interested in buying a closed store's inventory, I can give you a good deal! <grin>

Deb - now retired from AZ Bead Depot

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DebWAZ wrote

on Jan 18, 2013 4:30 PM

D.M.Z:

Brian, LOL, at 50 to 75 percent off, should there be anything left of value? Saying there was, if it was me, I'd be looking for another store in the area and offer them a whale of a deal on the remainder. It would probably have to be a really really good deal because most likely other stores are not doing spectacularly either and what would be left would be dregs.

I have had this happen recently with an antique mall showcase that I rented to sell things for my brother, all the "good" stuff went in the first few months and dribs and drabs since then. Now I have left cute little crafty pins and holiday pins and other non-popular items. I'll be glad to get rid of them for almost nothing....... so I think that would be how it goes with beads also.

So any remainder, going cheap, would probably not be the best investment to make until you had the time and education in bead things to really look it over. That's my take on it anyway. If the store owner has a note to pay on, they might have to get too much for the remainders and then it wouldn't be worth it at all. Hope this helps answer your question. Donna

Donna,

We just closed my store due to my hubby's health issues. Even after 50-75% off, we still have good stuff - I don't think Delicas, Preciosa, Swarovski, AA grade stones, etc would be "dregs". Strangely, the stuff that had hung around forever sold off right away, while the better quality stuff is still here. I don't mind having a few thousand tubes of Delicas or some AA grade amethyst in my personal stash!

Since we don't owe a cent on any of the leftovers, it doesn't matter to me when/if it sells. Hubby, on the other hand, wants his garage back, so there might be a little "discussion" about it! LOL

Deb - now retired!

normal702 wrote

on Jan 26, 2013 7:42 AM

Hi Deb. Are you wanting to sell any of your delicas? Or any of your other inventory? I am thinking of opening up a small bead store in my little town and I saw this thread. I thought I would ask. Thank you

shanks wrote

on Jan 26, 2013 10:07 AM

Hi normal702,

I have a few beads I would like to dispose of. If interested give me a shout and maybe we could work something out.

Regards

DebWAZ wrote

on Jan 26, 2013 1:32 PM

Hi Normal,

Please send me an e-mail off the forum at azbeaddepot@gmail.com and I'll be glad to chat with you in detail about my "leftovers". My hubby would be THRILLED to sell Delicas and other inventory and clear out the garage. <LOL>

Deb

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