This is a rare opportunity to acquire a highly profitable and well-established fashion accessories and cosmetics distribution/wholesale store in the heart of Downtown Los Angeles. Operating successfully for over 14 years, the business has a loyal and diversified customer base, serving local markets, out-of-state buyers, and clients across South America.

With annual sales between $5M-$6M and a net profit of $600K, this mature business benefits from strong supplier partnerships, including collaborations with high-profile brands like Fashion Nova. The business is fully stocked with inventory valued at $3M-$4M (at cost), which is included in the sale.

The owner, motivated by personal reasons, is offering this turnkey opportunity at a competitive price of $2.6M (including business, FF&E, and inventory), presenting significant upside potential for growth, especially in untapped online sales channels.

Investment Highlights:

1. Proven Track Record: Over 14 years of operations with stable sales and net profits.

2. Loyal Customer Base: Established relationships with local, out-of-state, and international buyers.

3. Ample Inventory: $3M-$4M (at cost) of fully paid-off inventory, including cosmetics, shapewear, false eyelashes, hats, belts, and more.

4. Strong Supplier Network: Partnerships with 40-50 suppliers, including renowned Korean cosmetic brands.

5. Prime Location: Spacious 24,000 sq. ft. (8,000 sq. ft. per floor across 3 floors) leased facility in Downtown LA.

6. Safe Operating Environment: The neighboring 24/7 trucking company ensures area security.

7. Financial Overview: Gross margins between 25%-30%, monthly expenses of ~$95K, and steady net profits.

8. Growth Opportunities: Immediate potential in online sales, direct sourcing from Chinese suppliers, and expansion into private label products.

9. Immigration Opportunity: Might be qualified for the U.S. EB-5 investment program for interested buyers, please consult with professionals.

Some other notes:
1. Inventory Overview:
• As per the listing, the store holds over $3 million in total inventory, including approximately $1.5 million in active inventory for regular sales. The remaining inventory largely consists of long-tail items that have already been written off and are not reflected in the official accounting records. Any recovery from this portion represents pure profit.

2. Seller Motivation and Pricing:
• The owners are eager to facilitate a quick sale and are pricing the store at a discount relative to the valuation report, which estimates the store’s value at over $4.6 million.

3. Add-Back Items for owners :
• Total Add-Back: $180,000/year. This add-back will significantly increase the profitability reflected in the store’s P&L, enhancing the overall value of the business.

4. In January 2025, a minor fire incident occurred in the third-floor warehouse area, damaging a small portion of long tile inventory. The first and second floors—which house the retail storefront—remained fully intact. However, due to the ongoing insurance claim process, the insurance company has restricted the store from fully reopening to the public. This has significantly impacted revenue, though the business interruption policy is expected to cover income loss. The insurer initially proposed a low settlement, which was rejected by the owner’s adjuster, and negotiations are currently ongoing.

5. The owner is currently exploring the possibility of relocating the business to a nearby location or negotiating a rent reduction with the current landlord. However, any final decision will be made after the insurance settlement is concluded.