Fixture Harvesting Solution

Hilco Fixed Asset Recovery (“HFAR”), a subsidiary of Hilco Merchant Resources, can provide a variety of services to support and manage your locations with an eye towards defraying costs and increasing recovery on unproductive assets.

HFAR is proud of the support it provides to clients, both financially and operationally, at several thousand locations per year. HFAR can manage all needs from day 1 to landlord turnover, ensuring full compliance to your expectations. Indeed, HFAR’s reputation amongst retailers, clients and investors is unmatched. This exposure and unmatched experience will continuously inform and drive a pipeline of innovative ideas. The COVID-19 pandemic has brought unprecedented challenges for retailers in obtaining necessary fixtures in a timely manner.

Long shipping delays from manufacturers put retailers at risk of not attaining essential fixtures for remodels or new store openings. Repurposing or harvesting surplus fixtures from closing or current locations can supply these needed fixtures.

Potential Needs

  • Pack & Ship / Harvest selected fixed assets
  • Monetize fixed assets as needed
  • Decommission / De-brand signage and other IP
  • Repair damage due to fixture removal
  • Broom clean condition upon turnover

HFAR is experienced in managing all these types of projects nationally in scope with a dedicated project manager and support resources that flex up or down depending on the number of locations.

FF&E Asset Management

HFAR is the largest non-merchandise fixed asset disposition company in North America and has the necessary resources to flex on a national scope to support projects with several hundred locations simultaneously. It supports retailers and landlords in a variety of ways and circumstances, including:

  • Pack & Ship/Harvest
  • FF&E Acquisitions & Dispositions
  • Clean-out Services
  • Decommissioning
  • De-branding

HFAR has a dedicated Project Management Office with tried and tested systems and processes for ensuring that every project is a success.

  • The Childrens Place logo
  • Target logo
  • Dicks Sporting Goods logo
  • H&M logo
  • Hudson's Bay logo
  • Saks Fifth Avenue logo
  • Kohls logo
  • JC Penney logo
  • Save-a-Lot logo
  • Walgreens logo
  • Lowes logo
  • Express logo

FF&E Scope - Harvesting
Strategic Alliance

Current Scope

HFAR can pack and ship fixed assets for storage and future use. Additionally, HFAR can monetize FF&E abandoned in certain dark or closing locations if there are unwanted fixed assets. HFAR will implement the required plan as per the Client. HFAR will leave all locations in broom clean condition for turnover to landlord or for continued dark site monitoring and maintenance. We can provide this service at scale throughout North America.

Economics

Given the extent of HFAR’s reach managing thousands of locations annually, it has refined and simplified a complex and economically detrimental task to one that unburdens your resources while dramatically improving economic results.

Project Management

HFAR was the first fixture liquidation company in the industry to develop a Project Management Department providing cleanout, management and decommissioning expertise for clients.

HFAR will take over management from initial communication. HFAR will pack and ship approved FF&E under a pre-approved approach on-site for a pre-determined length of time.

Technology

HFAR can utilize Hilco’s proprietary platform ReStore for reporting functions. The tool, can be used to collate the fixtures at any store location, whether dark or operating, prior to their removal, providing data that can be useful to influence future decisions.

Brand Protection

The process of removing or selling fixtures must be done in a manner that protects your brand. For a company that enjoys countrywide recognition, the importance of brand protection cannot be overstated.


Fixture Harvesting

Pack & Ship

To assist the Client in obtaining a higher R.O.I. with excess new or used FF&E at a remodel, relocation or closing location(s):

Expertise

HFAR has over 15 years experience working with major retailers nationwide with fixture retention.

Value-add

Expertise to efficiently pack FF&E for transportation and storage. By packing fixtures into full pallet configurations, HFAR will reduce both transportation and warehousing costs as well as minimize damage of fixtures during transportation. Photo documentation for the packing and loading of all fixture shipments is included at no additional charge.

Exceptional customer service

We have the resources to track inventories and pull specific orders from store closing locations on a timely basis to distribute to the Client’s destination - where it is needed and when it is needed.

Warehouse

Storage

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Cost Benefits

  1. Eliminates a need to lease storage space in a 3rd party warehouse
  2. Eliminates handling and freight cost to 3rd party warehouse
  3. The Client is already paying monthly lease in a dark store location

Economics

HFAR can provide labor to unload the harvested FF&E at receiving location, if necessary, at a daily rate and expense reimbursement.

HFAR will inventory and decommission the FF&E to be harvested, package for shipment and load onto the Client’s truck. As an option, HFAR can arrange trucking at an additional cost. An inventory and photos of the load will be provided to the Client.

Cost-saving Advantages to Fixture Harvesting with HFAR

  • Cost-effective processes have been created to manage your excess fixtures and will be tailored to best fit your needs
  • Crews nationwide that can react fast to meet your needs
  • Experience working with mall landlords and shopping centers to ensure compliance with any guidelines and/or restrictions
  • Complete management of the process from start to finish, allowing you to focus on your main business, while we focus on what we do best
  • “One stop” shop for all your fixture needs; saving you time and money

Brand Protection
De-branding

Through years of test-and-learn experience, HFAR has found the delicate balance between honoring brand and delivering the necessary financial and non-financial results.

HFAR has the experience and ability to de-brand any store, office or warehouse including removal and destruction of all signs, logos, banners or other IP materials, as needed.

HFAR will ensure repair of any damage to interior or exterior walls, ceilings, or roof resulting from FF&E removal with materials consistent to the existing infrastructure.

Technology

In 2019, Hilco and HFAR embarked on a technology project designed to digitize, amongst other things, its FF&E solution, and to harness the power of mobile technology and QR codes to improve results. In doing so, it has addressed:

  • The need to quickly and easily collate store fixtures;
  • The ability to easily sell and track FF&E;
  • The desire for real-time, accurate reporting on sold and unsold FF&E.

The tool, named ReStore (www.restoreforretail.com) can be used by HFAR to collate the fixtures at any store location, whether dark or operating, prior to their removal, providing data that can be useful to influence future decisions. HFAR can leverage this tool to catalogue FF&E in certain stores across many properties.

 

Technology Benefits

By using ReStore to support the Client with FF&E, HFAR can:

  • Develop a fixture list to allow for consistent and speedy cataloging of fixtures;
  • Produce store-by-store or multi-store catalogues, including images, descriptions and prices;
  • Export the FF&E inventory at any time to a CSV file for easy interpretation and reporting.

Where required, the cataloguing can be seamlessly transitioned into an FF&E sale using ReStore, to allow:

  • Full eCommerce
  • Daily sell thru analysis
  • Daily sales reporting
  • Analyze historical sales prices by geography and other variables to develop specific pricing plans that maximize revenue

Fixed Asset Monetization
FF&E

Hilco Fixed Asset Recovery (HFAR) is the nation’s leading fixed asset valuation and monetization firm.

Stores

Corporate Office

DC's & Warehouses

Global Footprint

Buyer Database (10,000+)

Store Diligence

IP Protection Services

On-Site Sales

Fixed Asset Sale
FF&E

HFAR can also monetize unwanted fixed assets in dark or closing locations. HFAR will monetize approved FF&E under a pre-approved approach on-site for a pre-determined length of time, creating FF&E revenue and reducing overall clean out expenses.

Goals:

  • Generate Free Cash
  • Defray Expenses
  • End-to-End Management (Sale planning and commencement, day-to-day oversight and management, turnover to landlord or dark site management)
  • Dedicated Project Management Office to ensure on-time, on-budget, and high recovery execution

Expectations

Create a financial model for the Client. Utilizing any available data, Hilco can create an output to provide context for how Hilco’s involvement can benefit the Client financially.

  • Potential Sales: Run an on-site sale with optimal sale term for existing fixture volume
  • Projected Expenses: Determine sale term for minimal expense and maximum revenue to reduce clean out expense to a minimum
  • Positive FF&E Revenue: Optimized FF&E Sale can materially reduce costs associated with store, office or warehouse cleanouts, often achieving profitability

HFAR believes it can provide material value in this regard by addressing FF&E early in the process to maximize return and reduce expense.


Ed Stepp

Managing Director

(224) 430-2561

Vicki McKenzie

Director of Project Management

(817) 714-1797