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2 Danvers shops to come together, create "store within a store"

Bella Sera announced the purchase of Lorraine Roy Women's Apparel and portions of its inventory. As part of this business reorganization, Bella Sera plans to keep the name and merge the two stores into a new entity, titling a portion of its Danvers, Massachusetts, store Lorraine Roy at Bella Sera. The merger is scheduled to take place January 1.

The two businesses have a seven-year history of working together, beginning when Bella Sera was located on Route 114 in Middleton. Because Bella Sera handles primarily bridal wear and Lorraine Roy handles special occasion dresses, the two stores often referred customers to each other. By combining the two businesses, the stores feel that both will be able to take full advantage of their existing customer base.

Business mergers can often be beneficial for both buyers and sellers, particularly if the two companies' interests mesh as in the present case. By merging the formal wear and bridal wear sections of the businesses into one store, Bella Sera and Lorraine Roy hope to offer one-stop shopping to their customers, with everything from mother-of-the-bride dresses to bridal gowns.

From a legal and financial standpoint, mergers are often valuable for both businesses that are involved. A merger between two businesses can bolster the power of both entities to borrow money for expansion, command bulk pricing from suppliers and represent a unified company at trade shows and other events. A business attorney usually draws up merger agreements that address all aspects of a merger and includes benefits and compromises for both companies concerned in the venture.

Source: The Danvers Patch, "Lorraine Roy to merge with Bella Sera, move from Danvers Square location," Robert Gates, Oct 10, 2012

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