INITIAL FUNDING FOR POLAND

The DECORADOR Reboot in Poland is funded by a current-running Series A $5,000,000 Private Placement Memorandum Offering sponsored by Global Retailers US LLC, an Oklahoma-registered subsidiary of Global Retailers, Inc.  The Reboot will first launch the e-commerce store and simultaneously implement the In-home Sales & Services™ (IHSS) channel country-wide while identifying available low-cost previously retail-occupied store locations within Warsaw and its suburbs.  Once these locations are identified, the stores will be opened in groups of 3 to 6 stores at one time.  The early launch of the e-commerce and the country-wide implementation of the internet-based IHSS channel will generate significant early revenues; thereby minimizing the ‘cash burn-rate’.  The ‘brick & mortar’ group-approach store opening provides significant leverage with bankers, international and Polish suppliers and service providers.  In addition, this approach saves thousands of dollars while negotiating contracts with the global turnkey outsourcing partners chosen by DECORADOR.  Increasing revenues; therefore profitability will be attained quickly and cheaply, as the Founder did at the 44-store O W Office Warehouse start up in Virginia Beach, VA and the 5-store big-box DIY chain Conibra (Casa ԑ Construcao) acquisition and reformat in Sao Paulo, Brazil.  The DECORADOR Reboot will cost $4,000,000, leaving $1,000,000 from the Series A $5,000,000 PPM for working capital or funding acquisition opportunities.  The Company will attain profitability with the e-commerce store, the country-wide In-home Sales & Services™ (IHSS) channel and nine low-cost stores located in Warsaw and its suburbs.

ADDITIONAL FUNDING

After profitability is attained, DECORADOR will submit an application for a EUR 5,000,000 equity investment and a EUR 1,000,000 line of credit to the European Bank of Reconstruction and Development (EBRD).  The EBRD funded $3,000,000 for the first big-box Decorador store in Warsaw through a private equity company in Poland.  The EBRD also focuses on the CEE and MENA countries and would most likely fund qualified investors desiring to purchase a Master Franchise System for their country.  Once profitable in Poland, the EBRD would be eager to invest once again in DECORADOR.

An alternative funding strategy for DECORADOR in Poland is to implement an initial public offering (IPO) on the Warsaw Stock Exchange (WSE) small cap market, NEW/CONNECT.  The Warsaw Stock Exchange (WSE) completed more than 40% of all IPOs offered throughout Europe in recent years, even more active than the London Stock Exchange.  The current investment opportunity with Global Retailers is a pre-IPO investment for "qualified investors".  In both funding strategies, early investors will be provided an opportunity to exit from their investment.

GROWTH FROM FRANCHISING

In addition to either the EBRD or IPO funding or both; marketing, selling and operating franchises throughout Poland, the CEE and MENA regions are a significant early source of new funds and low-cost new-store growth.

Akademia Rozwoju Systemów Sieciowych (ARSS), a Polish franchise consulting company was retained to guide Global Retailers in the design and implementation of its DECORADOR Master Franchise System™ and its operating manual.  The scope of this consulting project also included drafting the legal EU-compliance Master Franchising Agreement, developing the franchise marketing program, and the identification and referencing of qualified franchisee candidates located in the Central & Eastern European countries.

Moreover, Global Retailers has retained Babylon International Solutions, a consulting company with operating offices in Washington DC and Dubai - United Arab Emirates to market and oversee the DECORADOR Master Franchise Systems™ in the Middle East & North Africa countries.

The United States Overseas Private Investment Corporation (OPIC) is aggressively supporting and funding local investors in the CEE and MENA regions.  OPIC’s major priority is to support entrepreneurs and economic development of countries located in the CEE and MENA regions.  Once DECORADOR – Poland is profitable, OPIC will most likely be a low-cost funding source for Master Franchise purchasers or investors in both regions.

$2 BILLION VISION

Although Global Retailers immediate priority is to fund the reboot of DECORADOR to profitability in Poland, a Comprehensive Brand Development Analysis (CBDA) has been prepared illustrating by country, city and store prototype how the populations of Poland, the CEE, Turkey, MENA and Russia could support 2,000 stores generating $2 billion in sales.