Our wholesale appraisal process entails all of the specific functions found in our prevailing appraisal process with special attention given to wholesale-specific issues.

Inventory information, including units, cost and selling price, is reviewed to give Gordon Brothers Group a through understanding of markup structures by department and/or unit, how goods are sold, who the customers are and at what type of margin the goods are sold.

An analyst and manager will then meet with a disposition team leader from the Wholesale Division to strategize on key issues to focus upon for the specific appraisal. This kick-off meeting aids in the direction of the analysis and focuses on three key areas.

• Coverage: Gordon Brothers Group first determines how many locations exist and what their respective inventory balances are. To the extent there are material amounts of inventory in multiple locations, we will typically visit the most significant locations. This will be coordinated with the lender and refined based upon a number of factors including amount, composition, age and type of goods.
• Retail Pricing: For goods typically found in retail stores, Gordon Brothers Group conducts field analysis on key items and their pricing in both full and off-price retailers selling those particular goods. Understanding the pricing of goods to the consumer is particularly critical as we study various formats, since some could potentially buy the goods in question for sale to their own customers.
• Current Customers: Understanding the type of product, how it is sold in the marketplace, and who the current customers are is critical to building a strategy of how a disposition of the goods would occur. By understanding the market and the potential channels for the goods, Gordon Brothers Group can formulate the best possible disposition strategy.

Gordon Brothers Group leverages field professionals with appropriate expertise in the product to be appraised. After an examination of the inventory is conducted and an understanding of pricing and placement of the goods in the stores is obtained, Gordon Brothers Group field professionals apply recoveries to the goods (gross recovered dollars) and determine the expenses needed to conduct a liquidation.

A draft of the net recovery (gross recovered dollars less expenses) is presented for review with the disposition team leader. At that meeting the team leader will review the analysis with the appraisal analyst, manager and field consultant(s), adjust the model as appropriate based upon their knowledge of the marketplace and sign-off on the final values.