Monday, January 28, 2008

Shorewood Liquor Stores Sell For $720,000

The Shorewood Liquor Store sale grossed approximately $720,000, before sales fees and severance to displaced employees. Part of that sale price also included existing inventory.

Assuming the profits from continuing operations would have been approximately $40,000 per year, the sale suggests that the stores had a return on equity of approximately 5.5%. The city can now use the sale proceeds to generate the same rate of return in a much more passive and predictable manner.

A Star Tribune article about the sale can be found here.

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