Our Role

Our mission is to develop a store closing program designed to maximize the return on ALL store inventory, minimize expenses, mitigate distraction, and protect your brand. The following pages summarize our role.

  • In partnership with your Company, Hilco will develop, implement and manage a store closing sale strategy designed to achieve the Company’s goals.
  • We would provide expertise and guidance in order to maximize value, minimize expenses, and mitigate distraction. This expertise includes analysis & due diligence, sale strategy development, discount, margin protection & expense micromanagement, marketing/advertising, supervision, loss prevention, FF&E disposition, compliance, logistics, and customer transitioning. In addition, Hilco guarantees 100% inventory sell-through.
  • Hilco will perform its store closing analysis and due diligence at no cost to its clients, and shares its models and assumptions openly.  Also, if requested, Hilco is willing to take full P&L responsibility for the performance of the sale and all financial results. Based on our experience in similar situations, the net result would be better than the Company could achieve on its own. If we cannot add incremental value we would pass on the transaction.
  • Our involvement would enable your teams to focus on the go-forward operations and relieve them of many of the operational compressions associated with store closings, which are, in essence “rear-view mirror” events. However, the success of the event sale very much depends on collaboration, participation and commitment from Company employees.
  • During the sale, we would not take control of the stores, but rather would partner with the Company to implement an agreed upon strategy consistent with your goals and objectives. In partnership with the Company’s operations teams and store level personnel, Hilco will provide highly experienced and dedicated resources to properly set up and manage the sale event, including:
    • Project Lead: a veteran retail executive who will be responsible for all aspects of the excess inventory sale event in each store, from initial set-up through implementation to the conclusion of the sale. The Project Lead will be based in the corporate office and will manage the entire event consistent with the goals of the sale.
    • Project Controller: a Project Controller working closely with the Project Lead will be assigned and placed in the corporate office and maintain responsibility for expense management, sales reporting, inventory and sell through analysis.
    • Project Supervisor(s): Akin to District Managers, assigned to assist with the training, implementation, and management of assigned locations.
    • Store Staffing: Stores would be staffed by existing Company employees. Hilco does not replace store-level personnel with its own associates. Your employees remain your employees. Hilco will provide guidance to your employees regarding proper store closing execution.
  • Our experience is that, by using our services, the Company will achieve a better net recovery on their inventory in store closing sales than when they conduct the sales themselves. There will probably not be much difference in the results achieved in selling the top 20% of the inventory – the retailer will do as well. But selling the "back end" of the merchandise – the less desirable inventory – is more difficult. Because we have done thousands of sales, we know what constitutes the least salable inventory, and what can be achieved in the sale of such inventory. By accelerating the discount on the back end of the inventory in the beginning of the sale, when there may be excitement and a lot of people in the stores, this inventory may be sold for more value than would be achieved at the end of the sale. This requires that we micromanage the sale on a subcategory basis – to squeeze margin from the merchandise. It is one manner in which we are able to "create" value.
  • We recognize that the most important asset of the Company is the value of is its brand, and that no action in connection with the closing can diminish its value. Moreover, as an investor in brands such as Steele’s, BUT, Frederick’s of Hollywood Polaroid, HMV, Bombay, Miss America, Sharper Image, and Halston, Hilco has a keen understanding of brand value. To preserve this value, we use the Company’s processes, infrastructure and employee handbook, and treat all employees and customers in a manner consistent with the Company’s philosophy. All advertising and signage will speak with the voice of the Company and be preapproved by the Company’s management. And, finally, throughout the closing event, the stores would be maintained in a first class manner.
  • To transition the customer from the closing stores to the Company’s ongoing stores, we would institute a multi-prong program. “Bounce-back” bag stuffers under which the customer is incentivized to make the first purchase at the next closest ongoing store have been particularly effective – and can be easily tracked. Moreover, prominently displayed signage informing the customer of the next closest store is beneficial. Finally, other creative programs such as buttons worn by the employees with the message to visit the ongoing stores have proven useful. We have successfully implemented these programs in such transactions as Radio Shack, Blockbuster and Winn Dixie.
  • We possess extensive experience in all brick and mortar retail locations. We maintain good relationships with all major and many “tier 2” and below landlords in North America. Moreover, many of our clients continue to operate stores with landlords of closing locations. As a result, we understand the importance of conducting ourselves in a manner that would not disrupt your relationships with landlords.