Buxbaum Group Expects To Appraise Upwards Of $5.0 Billion In Inventories In 2003

Furniture World Magazine

Buxbaum Group’s appraisal division is on track to appraise upwards of $5.0 billion of consumer products inventories at cost value during 2003, having already exceeded the $2.0 billion mark during the first half of the year. The firm’s appraisals are executed on behalf of lending institutions at manufacturing, wholesale and retail companies. Through the first half of 2003, approximately 55% of Buxbaum’s appraisal activity has been on wholesale distribution inventories, around 15% has been in the manufacturing sector and the remaining 30% has been on retail inventories. By contrast, during 2002 the retail segment accounted for 45.7% of the inventories appraised by the firm; wholesale distribution represented 43.2%; and the remaining 11.1% was derived from projects at a variety of combined manufacturing/wholesale distribution and/or wholesale distribution/retail operations. “So far this year we’ve seen our appraisal business shift more into the wholesale distribution sector,” said Buxbaum Group vice president Jim Siebersma, who directs the appraisal unit. “While our reputation over the years has always been as ‘retail experts,’ which we maintain as a core strength, our lender clients have come to realize that the breadth of our expertise extends far beyond retailing and into the manufacturing and wholesale distribution arenas.” In addition to the firm’s efforts to educate lenders on its capabilities in the manufacturing and wholesale arenas, Siebersma attributed the shift in its appraisal business mix to general trends in lending activity across the three sectors. “It appears that lending in the manufacturing and wholesale distribution industries has outpaced retail lending,” he noted. “We believe this is largely due to the fact that the number of companies in the wholesale and manufacturing sectors has not contracted to the same extent as in the retail industry.” While Buxbaum Group continues to aggressively pursue inventory appraisal and liquidation projects in the retail area, its efforts to gain a bigger share in the wholesale and manufacturing sectors will soon take another turn with the launch of seminars for lenders aimed specifically at addressing the issues associated with appraising and liquidating wholesale inventories. “We are very knowledgeable of the idiosyncrasies related to liquidating retail inventories, and the mechanics of most retail liquidations are similar,” Siebersma explained. “The characteristics and nuances of liquidation in the wholesale industry are quite different from retail, and we’ve experienced these differences first hand. To that end, our liquidation team has provided our appraisal group with invaluable insights on the varying criteria related to the liquidation of wholesale inventories. Those factors are incorporated into our appraisal projects, enhancing our ability to provide the most accurate assessments of inventory value.” Buxbaum Group, together with affiliate Buxbaum/Century, has built its reputation for over 30 years as one of the largest liquidators and appraisers of retail and wholesale inventories, as well as machinery and industrial equipment, across North America. A subsidiary, Pathway Strategic Partners, LLC, provides turnaround, expansion and/or downsizing strategies, in conjunction with other advisory consulting and management services.