American Science Surplus Employee Purchases Store to Prevent Closure

What's Happening?

Kim Stenglein, a long-time employee of American Science & Surplus in Milwaukee, has acquired the store to prevent its closure. The store, located at 6901 W. Oklahoma Ave, faced financial difficulties earlier this year, prompting former owner Patrick Meyer to launch a GoFundMe campaign that raised nearly $200,000. Despite the funds, the business model was unsustainable, leading to the sale of the Milwaukee location to Stenglein and another store in Geneva, Illinois, to a different employee. The Park Ridge, Illinois, store will close. Stenglein plans to maintain the store's brick-and-mortar focus, with no immediate plans for online sales, and aims to streamline product offerings while keeping shelves stocked.

Why It's Important?

The acquisition of American Science & Surplus by an employee highlights the challenges faced by small businesses in maintaining operations amidst financial difficulties. This move preserves jobs and maintains a local retail presence, which is crucial for community engagement and economic stability. The decision to focus on physical sales rather than online could impact the store's competitiveness in the digital age, but it also emphasizes the importance of local customer relationships. The transition may serve as a model for other struggling businesses considering employee-led buyouts as a strategy to remain operational.

What's Next?

Stenglein will need to establish new vendor relationships to ensure the store remains well-stocked, aiming for smooth operations by 2026. She plans to engage with the store's customer base, known as 'surpies,' to tailor product offerings to their preferences. The success of this transition will depend on her ability to adapt to market demands and maintain customer loyalty. The potential for future online sales remains open, which could expand the store's reach and revenue streams.