A long term client of Active, recognised as a pioneering manufacturer and distributor, developing and sourcing the brightest and best products from around the world. Building up over nearly 30 years a diversified portfolio of products in various categories with many leading brands resulting in significant influence in over 50 of the world’s most lucrative markets.
Unforeseeable business pressures from downturn in sales as a result of COVID-19. Two business units in particular were greatly impacted by retail closures with the apparel category one of the hardest hit during the governments social restrictions. Being a wholesaler, the client was completely driven by their retail sales channels.
The business made a decision to close out the underperforming areas and liquidate all remaining stock. Active were able to offer an immediate return via Trade Credits, three times higher than the cash sale amount received for the liquidated stock.
Finding a suitable buyer who would “take all” offered a total and immediate solution to the obsolete inventory and allowed the business to focus on their successful and core areas moving forward towards recovery from COVID-19.
Setting up a targeted approach for the future may mean liquidating close out inventory, enabling the business to start fresh with maximum opportunity for success in the ‘new normal’ post-COVID 19 retail world.