In a conversation last week with another WAHM, we discussed how we are sailing into rough seas, and we need to prepare as best we can now. The sad truth is that not every shop will make it through the next few months. Although, I hope and wish that we all do. I am working on Truly Charis, Rox and CNE the best we can to prepare for whatever lies ahead. This weekend, I read news of Revlon filing for Chapter 11 Bankruptcy. The most alarming part is that they struggled with the EXACT same things that I have been discussing over the past year.
These are some of the reason listed in the article that I, along with Revlon and other small businesses, are experiencing:
- “inability to source a ‘sufficient and regular supply of raw materials.’”
- Shipping costs increases, 4x higher than in 2019
- rising inflation, leading to the rising costs in materials & supplies and less money for consumer discretionary spending
- “ongoing supply chain challenges that have left them with the wrong inventories”
This last one is EXACTLY what happened to Truly Rox in 2021. We ordered a fall/winter line to receive in August, just in time for our busy season, and we received the inventory in late December and January. That leaves us with large amounts of capital tied up and inaccessible considering we paid for each of the items that are still sitting.
Reading about Revlon really alerted me to the severity of the issue spanning across businesses large and small. It opened my eyes to formulate and implement a plan for our small business immediately. I have decided it is in the best interest of Truly Charis to begin liquidating the inventory we have that is not moving, including, but not limited to:
- Spring and summer solids
- Dynamic dyes
- Less popular jersey colors
- Wool care products
- Truly Rox 2021 inventory
Most will be done DOND style, but we will figure this out as we go. I will also be thinking of ways to restructure TC during this time.
While I really appreciate your support and your every purchase, please do not go into debt or overcommit in a way that will cause harm to you or your financial security. It’s not up to any one of you to keep TC or any other business alive, but together we can make sure the WAHM markets as a whole does not die out. The end of the WAHM market would impact the livelihood of many people and ultimately reduce the number of product offerings and choices you have, so it’s in all of our best interest to keep this dream alive. Thank you now and forever! 💕