FEATURED PORTFOLIO COMPANY Brother’s Supermarket

Context

Owned and operated by a Latino family, Brother’s Supermarket is a $5M business that has been providing a wide range of ethnic food products since 1989. Brother’s is currently engaged in a strategic expansion as a major subtenant of CVS in a new store in an emerging inner city commercial district. This expansion could double its business by 2008.

Advisory Need

Brother’s retained Next Street to serve as a trusted advisor in discussions with CVS, including support for proposal preparation and representation in negotiations. As the project moves forward, Next Street will guide capital planning and budgeting, closely coordinating with CVS. Next Street will also guide Brother’s through the process of designing and implementing the infrastructure and controls needed to expand their retail presence.

Financing Need

Brother’s will need growth capital to pay for improvements to the new facility, including furniture and equipment.

Impact to Date

Next Street played a key role in discussions with the third-party real estate services company representing CVS. Next Street’s guidance and access to capital were critical to Brother’s Supermarket winning the opportunity to open a new store as a subtenant of CVS in CVS’s prime, new location.

Looking Ahead

The new store is projected to boost the company’s total revenue from $5M to approximately $11M. The company is also likely to benefit from bulk purchase cost savings and formalized operations.