Inkkas Worldwear – The Profit Season 3 Episode 18

Marcus Lemonis Vs Inkkas Worldwear

The Company: Inkkas Worldwearinkkas-website

The Owner(s): Dan and Dave Ben-Nun and David Malino

Website: https://www.inkkas.com/

Intro

In this episode of The Profit, Marcus Lemonis visits Inkkas Worldwear. Inkkas Worldwear is a maker of handmade, fair-trade, and eco-friendly shoes. Owners Dan and Dave Ben-Nun and David Malino are crafting shoes with so much respect to the environment and the people. This custom-made shoe business creates casual footwear for both men and women using the best global textiles and inspirations.

inkkas-store

Although Inkkas Worldwear has a very unique concept and already reached several wholesale customers, the business is close to losing it all. Most of the sales are coming from online sales, while the rest is from sales to retailers. The Inkkas Worldwear’s store front in Brooklyn functions as a shoe store, part office and more.

inkkas-inside-store

Marcus likes their products and business concept; however, he believes that there were issues that need to be addressed to save the company from closure. Inkkas Worldwear is selling too many products that do not fit the bill. They did not enhance their core and highest selling products, the customers are ordering less.

Problems/Issues In The Business Found By Marcus

  • Too many designs with limited sizes.
  • Some shoes are not well-made.
  • The store is unorganized.
  • Lots of debts.
  • The business is losing big and can be closed soon.
  • Owners did not know their exact numbers.
  • Their launching new products too fast.
  • Dan’s financial decisions made the company fail.
  • Dan struggles to listen to his co-owners.

The Deal

Because Marcus sees a bright future for Inkkas Worldwear, he offered the Dan, Dave and David 750,000 for 51% ownership. He wants to give the three (3) co-owners $60,000 each as their salaries. Marcus also wishes to use some amount to resolve the debts, pay the service merchant loan, pay for inventory and product development. Marcus is completely in control of everything.

inkkas-deal

Dan was so excited with the deal but his brother Dave reminded him that he will regret the deal. Marcus gave them two (2) options: (1) $750,000 for 51% ownership; and (2) 600,000 for 40% ownership. But the second option should assure Marcus that he gets guaranteed 10% return. Dan, Dave and David decided to take the second proposal and the deal was sealed.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Inkkas Worldwear stop being a retailer, they focus on being a wholesaler.
  • They work on style and comfort.
  • They transfer to a new location.
  • They remodeled their space and make it more conducive.
  • They focus on the core line.
  • They stick to the basic.
  • They stop reinventing the shoe line.

During The Show…

For the owners to get a real sense of the foot business, Marcus brought them to DNA Shoewear to assess what among the products people are actually buying. They collected necessary points that will give them the idea what should be done. Marcus challenged the Inkkas Worldwear’s team to focus on 5 models with 4 geographic influences.

inkkas-DNA

Marcus and the co-owners visited the Modern Vice. Marcus proposed the idea that they must hire their services to build the prototype with the right style and comfort. Modern Vice can make the shoes with the right details.

inkkas-modern vice

Marcus was so glad how fantastic the new Inkkas Worldwear’s location is. He posts a challenge to the team to make 5 new products that will truly represent the company and its core values.

inkkas-new-office

They visited the New York Elegant Fabrics to get the best fabrics. Marcus was disappointed that Dan cannot focus and he is all over the place. He does not want the company to spend money for developing new products every time. He kept reminding Dan that he needs to focus and listen to others.

inkkas-nwyork

Conclusion and Updates on the Business

Marcus gave Dan a last chance and let him worked with his team. He wants him to step up and be the leader of his squad. Dan is very creative but normally too aggressive. In the process, with the guidance of Marcus, he was tamed and learned to focus well. Inkkas Worldwear presented their banner products and the owner of DNA Shoewear was happy.

inkkas-newdeal

Inkkas Worldwear made a deal with this huge shoe retailer. Marcus was so proud with Dan and all the people of Inkkas Worldwear. They made exciting products that truly represents their company and their visions. Marcus knows that they will succeed.

I hope you enjoyed this review of this episode.

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Rob

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Vision Quest Lighting – The Profit Season 3 Episode 17

Vision Quest Lighting – The Profit Season 3 Episode 17

 

Marcus Lemonis Vs Vision Quest Lighting

The Company: Vision Quest Lightingvisual-quest-site

The Owner(s): Larry Lieberman

Website: http://www.vql.com/

Intro

In this episode of The Profit, Marcus Lemonis visits Vision Quest Lighting. Vision Quest Lighting was founded by Larry Lieberman more than a decade ago. The company becomes one of the biggest custom lighting manufacturers in America. Vision Quest Lighting caters businesses like national retail account brands, high-end residential, and hotel chains.

vision-quest

Vision Quest Lighting (VQL) specializes in creating unique lighting effects. Its manufacturing facility on Long Island in New York has crafted amazing masterpieces. Marcus is so fascinated with the quality and intricate designs of VQL. He believes that helping the company will bring in more employment opportunities and more room for success.

Vision Quest Lighting has earned the respect of the design industry but struggling to earn and grow. The company is have lots of debts and decided to let go of so many employees. It was the strategy that the owner, Larry perceived as the right thing to do.

Unfortunately, he made another wrong decision. Vision Quest Lighting has no leader and no clear path to follow. Without a big change, the company will soon be in the brink of closure taking with it the dreams of its people.

Problems/Issues In The Business Found By Marcus

  • Larry has no leadership skills.
  • He miscalculates the production cost and the prices of the products.
  • Larry cutting down the number of workers drastically.
  • The company is downsized.
  • There is so much crap around the place.
  • Larry artificially inflates his assets.
  • Larry is taking money from his kid’s college funds.

The Deal

Even if Marcus saw some issues in Vision Quest Lighting early on, he is confident that the company can go back on the right track. He is very intrigued with the business that he offered Larry $375,000 for half of the business. Marcus wants to use the fund to hire new people, pay down the debt, and keep some money as a working capital.

vision-quest-deal

Marcus wants to use the money to start the process of fixing the system. He is also 100%in-charge of the business.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Hire new people.
  • Pay the debt.
  • Let Larry focus on designing.
  • Clear all the clutter in the warehouse.
  • Introduce a new system.
  • New machineries were bought.
  • New designing, production and selling systems were used.

During The Show…

It was hard for Larry to let go of his old inventories because he felt he can do something about them to make sales. Marcus appreciate that he admits his mistake and desired to correct it. However, it is time for Larry to clean the warehouse to make a bigger workplace and focus on what is working.

vision-quest-gotham

Later on, he agreed on throwing all the trash away and embraced the new systems. Marcus brought him and his team to Gotham Lighting. They tried to promote their products and services. Gotham Lighting gave them a chance by a lighting project for a hospital. Everyone was so happy with the deal.

vision-quest-fabtech

When they start the production, Marcus noticed that the machineries are so outdated. It makes the production process longer, less efficient and costly. So, Marcus decided to bring Larry to FabTech. They looked and purchased new and modern machineries to improve the company’s operation.

Conclusion and Updates on the Business

Vision Quest Lighting was able to deliver the Gotham Lighting. Unfortunately, the owner and Marcus were disappointed with Larry because he delivered it late. Still, they were impressed with the output.

vision-quest-sweet-pete

Marcus gave Larry another challenge. He brought him to the new Sweet Pete’s new location. The store will open soon and he wants all the lighting and design fixed within two weeks. Larry was not so sure about it but he accepted the challenge.

vision-quest-sweet-pete-finale

Hours before the opening, Marcus was so worried that the Vision Quest Lighting will gonna make it. But Larry reassured him. Truly, the company made it and everything was in place for the opening of Sweet Pete. Marcus was more than happy and satisfied. Larry and his team and family were so delighted.

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<< Visit the previous episode KOTA Longboards – The Profit Season 3 Episode 16

KOTA Longboards – The Profit Season 3 Episode 16

Marcus Lemonis Vs KOTA Longboards

The Company: KOTA Longboardskota-longboards-website

The Owner(s): Mike and Nikki Maloney

Website: http://www.kotalongboards.com/

Intro

In this episode of The Profit, Marcus Lemonis visits KOTA Longboards. KOTA Longboards is a skateboard company that specializes in handcrafted high-quality skateboards. Mike and Nikki Maloney are the business owners who started KOTA Longboards in 2012. The company is proud that every product is made for performance and comfort. It allows the riders to control their speed and direction. KOTA stands for “Knight of the Air.”

Marcus visits KOTA Longboards in Denver, Colorado with hopes of making a deal. He wants to see if what help he can offer the company to provide its customers the freedom of landsurfing with their longboards. Mike was a former US Navy pilot who has no business experience and has no solid business plan.kota-longboards-shop

KOTA Longboards is facing a lot of problems like a limited product line and high employee turnover rate. Marcus loves the products and he thinks that it is smart for him to invest. However, when he visits the location, he was dismayed that the company has only one length and size for all their products.

Marcus is aware that the company is already making a big name in the industry, but he thinks it can go bigger and reach more people with some important changes. He observed that Mike has some lapses with how he operates his company and how he views the market.

Problems/Issues In The Business Found By Marcus

  • The KOTA Longboards are expensive.
  • The company has limited audience.
  • Mike is not fully-committed in managing the business.
  • Mike has overvalued his contribution to the company.
  • Mike is not open to feedback and advises.
  • The company is sharing their working space with a furniture company.
  • Mike does not take care of his employees.
  • People are leaving the company.
  • KOTA Longboards does not hit the right market.

The Deal

Marcus strongly believes that Mike can make his company can earn more and let more people ride his longboards. Marcus offered Nikki and Mike a $300,000 deal for 40% ownership. The amount will be used to pay Josh and as a working capital.

kota-longboards-deal

Marcus wants his share to be divided where he gets 25%, Sandy gets 5%, Josh get 5%, and 5% for Chris. He wants all these employees get their fare share of the company. Marcus also wants to have the full control of the company. Nikki and Mike accepted the offer and they shook hands and a deal was made.

During The Show…

Marcus brought the KOTA owners to Roby Dyrdek. Roby is not only a professional skateboarder, he is also an excellent businessman. Marcus allowed him to speak up his mind and share his thoughts about KOTA. Roby emphasized that Mike and the company does not have a good price. It’s too expensive and does not hit the right demographics. Marcus was happy that the points he talked about earlier are also the issues Roby discussed.

kota-longboards-rob

Marcus and the KOTA Longboards team talked about new designs and sizes to meet more of the market’s need. They were planning to lower the production cost to lower the price they offer their customers. Everything was well-planned and they start working on it. Unfortunately, after a couple of days Mike and Nikki wish to renegotiate. After couple of hours, no new negotiation was made and they went back to the original deal.

kota-longboards-renegoniation

Marcus was frustrated that people keep leaving KOTA Longboards and even alarming that Mike is not worried about it. Mike is always not always around to manage the business.

Conclusion and Updates on the Business

Marcus is very frustrated with Mike because he shows no commitment. He is not giving his people what is due to them. Mike always contradicting Marcus and always insist his ideas even if it’s not working.

kota-longboards-quitdeal

Marcus called all those old employees who left the company as well as the owners. Marcus wants to fix things and let both sides express their sides so that a real solution be accomplished. The former employees aired their grievances and disappointments with KOTA Longboards and Mike. Mike was hurt but has no plans of acting to resolve the issues.

kota-longboards-walkout

Marcus was extremely frustrated with him and said he cannot trust Mike even a dollar. Mike’s attitude and inability to see and respond effectively make it harder for the process, the change and the growth to happen. Suddenly, Marcus declared that he does not want to continue the deal. Marcus gave his last message to the people and left the building.

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Rob

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<< Visit the previous episode Wick’ed Candle Company – The Profit Season 3 Episode 15

Standard Burger – The Profit Season 3 Episode 14 (The Return)

Marcus Lemonis Vs Standard Burger

The Company: Standard Burgerstandard-burger-site

The Owner(s): Sammy Lazoja, Joseph Tranchin, Joe Covello, Todd Baslin and Fuji Lazoja.

Website: http://www.standardburgers.com/

Intro

In this episode of The Profit, Marcus Lemonis visits Standard Burger. Standard Burger is renowned for its customizable burger experience, tasty potatoes and delicious ice cream/shake. Marcus has visited this company in the past and helped in rebuilding it. In few months after he joined the business, a lot of improvements happened.

standard-burger-wins

At the time of Marcus’ surprised visit, he was so happy to see how the business maintained to be neat and working well. He even congratulated the team, Sammy, Joseph, Joe, Todd, and Fuji. He was so proud that Standard Burger won the TimeOut Magazine’s Battle of the Burgers. It will help the business establish itself as the “national Burger” brand. This will help get potential franchisee.

standard-burger-marcus-back

But the business tycoon was dismayed and confused seeing other items written in boards near the cashier. None of those were part of the business plan and no discussion was made. They have potential franchisee to come and it’s a big opportunity they should not miss.

standard-burger-themeeting

When Marcus inquired, Joe tried to explain but Sammy said he made some decisions without asking the other partners. An argument ignited between Sammy and Joe. Joe make decisions to lower cost by introducing new products and Sammy rarely visits the store.

New Problems/Issues In The Business Found By Marcus

  • Selling new products without proper planning.
  • Confusion in the kitchen and disorganized system.
  • Joe and Sammy’s feud is getting worse.
  • The food cost of Standard Burger is too high.
  • Joe cannot have a conversation with anyone without interrupting.
  • Joe had a relationship with an employee.

During The Show…

Marcus visited the new locations and Marcus was not happy. He discouraged it and proposed to focus on the getting franchisee rather. Standard burger focused on perfecting their business and making more franchise.

standard-burger-lafrieda

Marcus called Pat LaFrieda to negotiate with the price of the meat. They get a deal and even a big deal when they found another two potential products they can add to their menu to offer variation and the kids. This will offer kids option and the potential franchisers more variations.

Conclusion and Updates on the Business

Marcus confronted Joe and told him he is no longer the General Manager. Sammy filled the position momentarily until they can hire someone suitable for the position. Marcus was unhappy that Joe is mistreating someone in the company because of a broken relationship. He does not encourage the idea of letting personal issues get into the business.

standard-burger-marcusand joe

In the end, everything was settled and eases the relationship between the business partners. They were able to get a deal with the first franchisee. Marcus is confident that Standard Burger is on the track of more success in the future.

standard-burger-the-new-deal

I hope you enjoyed this review of this episode.

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Rob

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<< Visit the previous episode Betty’s Pie Whole – The Profit Season 3 Episode 13.2

Betty’s Pie Whole – The Profit Season 3 Episode 13.2

Marcus Lemonis Vs Betty’s Pie Whole

The Company: Betty’s Pie WholeBettys-Pie-Whole-website

The Owner(s): Elizabeth “Betty” Harris-Hunt

Website: http://www.bettyspiewhole.com/

Intro

In this episode of The Profit, Marcus Lemonis visits Betty’s Pie Whole. Betty’s Pie Whole is maker of savory and sweet pies. Elizabeth “Betty” Harris-Hunt owns the company and serves whole, no slices pies. This southern lady wants her customers to have it all and allows them to have better portion control.

bettys-pie-whole-store

Betty’s Pie Whole uses real fruit that are prepared by the staff. The company never use canned or pre-made pie fillings. Betty’s Pie Whole uses premium chocolate, local eggs, pure butter, and real cream. The high-quality ingredients make all the difference.

bettys-pie-whole-elizabethan

Betty’s Pie Whole was doing great and has a solid following. But things get bad when she opened her second location, which she named “Elizabethan Desserts.” The two locations were not bringing in profit for Betty. Marcus is a fan of the business concept and he thinks Betty deserves a chance. He visited the Encinitas, California location with high hopes of making a deal.

bettys-pie-whole-kitchen

He was disappointed when he saw that the store lacks displays at that time of the day and the customers are waiting for so long. When Marcus checked the kitchen, he was saddened that some of the equipments are not working and there is limited production. The manager admitted that Betty is very talented but a bad manager. She cannot handle the production, operation, the people, and the finances.

Marcus and Betty checked the finances and it’s no good. The two locations are not gaining. But the business tycoon sees some light and he wants to help Betty. He told Betty that it’s hard to run two (2) different businesses all at the same time without enough resources and absence of working system. The owner of Betty’s Pie Whole cried when she confessed to Marcus that she have not seen her mom for years because she cannot afford even if she work her heart out.

Problems/Issues In The Business Found By Marcus

  • The food cases are empty.
  • The bakery cannot produce enough.
  • Only half of the equipments are working and the sink is not working.
  • Betty’s Pie Whole cannot satisfy the demand.
  • Betty is not managing the business well.
  • Customers line-up outside the door.
  • Recipes are not written down.
  • There are inconsistencies with the products.
  • Betty cannot make some time for herself.

The Deal

Marcus has faith in Betty and the Betty’s Pie Whole. Despite the failing businesses, he believes that his expertise in the field of savory food can help the company. He offered Betty $75,000 for 25% of the business. The money will be spent as working capital, put some on the bank and fix the process in the kitchen. Marcus is 100% in-charge of the business.

bettys-pie-whole-deal

Betty took a bit of time to think. Marcus said that he does not want to pressure her and he can give her more time. Betty happily accepted the deal and she was so excited with the deal. She was glad with the idea that Marcus will come back by tomorrow.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Change the system with a new appropriate one.
  • Improve the process.
  • Get rid of the old equipments and upgrade them.
  • Make a list of written recipes.
  • Make variations of the pie.
  • There is a new working station.
  • They focus on the pies only.
  • The Elizabethan was closed.
  • They let other company make the ice cream.

During The Show…

bettys-pie-whole-kitchen-design

Marcus is motivated to help Betty out of the spiral. He brought his trusted professional kitchen designer and introduced to Betty. New design was planned and the renovation started. Marcus was dismayed that Betty was not making the recipe. The written recipe will help the staff make the pies themselves and increases the productivity as well as the consistency.

bettys-pie-whole-closing

Marcus brought Betty to Elizabethan Desserts to tell her that the bakery should be closed. It was difficult for her since she believes it has a big potential. But Marcus reminded her about focus and letting go. She finally embraced the idea. They also settled the ice cream issue and let other company make it for them so Betty’s Pie Whole focuses on pie alone.

Conclusion and Updates on the Business

Everyone in Betty’s Pie Whole is glad with the huge change. People are more productive and the work process runs smoothly. Marcus was so happy to see the people functioning well and very energized. The new tools helped in the production and efficiency.

bettys-pie-whole-new-working

Betty finally organized the recipes and compiled them neatly on several books. She now listens and trusts Marcus more. He then surprised her. Both were so happy and in tears when Betty saw the plane tickets and hotel reservations to visit her mom. She was genuinely thankful of Marcus and all the learning she gathers from the entire process.

bettys-pie-whole-new-design

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Rob

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<< Visit the previous episode Da Lobsta – The Profit Season 3 Episode 13.1

Da Lobsta – The Profit Season 3 Episode 13.1

Marcus Lemonis Vs Da Lobsta

The Company: Da Lobstada-lobsta-website

The Owner(s): J. Wolf

Website: http://www.dalobsta.com/

Intro

In this episode of The Profit, Marcus Lemonis visits Da Lobsta. Da Lobsta is a fast casual restaurant that specializes in lobster rolls and other lobster dishes owned by J. Wolf. The company has a food truck that goes around Chicago. Da Lobsta serves Authentic New England sandwiches with a twist. J. Wolf took the east coast concept of chilled Lobster Claw and Knuckle meat, mayo and warm garlic butter sprinkled on top of a New England toast. If customers want to be more adventurous, they can choose from Asian, Greek, Indian, and Mexican varieties.

da-lobsta-food-truck

Marcus loves the business idea of Da Lobsta which was established in January 2013. He can see how people patronize the food and kept coming back. He wants to help J. Wolf and the company settle all the issues and make things run smoothly. But when Marcus visited one of the stores, he witnessed the tension among the employees.

da-lobsta-store

Marcus was upset that when he asked J for the financial statements there was none. When J enumerated all the debts it amounted to $431,000. He has couple of loans and did not pay the state taxes. He also lends money from his relatives and friends. Marcus was disturbed knowing that J keep using the money from the company for his personal pleasures like eating, movies, and expensive goods such as Hugo.

da-lobsta-finaces

The financial condition of Da Lobsta has strained the relationship of J and his father. Marcus was so disappointed with J’s spending and he asked for some space to think. When he came back a day after, he listened more to J and his story. Marcus wants to give me a chance.

Problems/Issues In The Business Found By Marcus

  • J’s irresponsible spending.
  • Unpaid state taxes.
  • Lots of debts.
  • Strained relationship between J and his father.
  • J’s family is tired of footing the bill.
  • J never invested any money to the company.
  • J is taking out so much money from the company.
  • Da Lobsta has no chain of command.

The Deal

Marcus sees a lot of potentials with Da Lobsta. However, he confronted J that he needs discipline. Marcus’ initial offer was $210,000 for 51% ownership. The offer requires the sale of one (1) of the brick and mortar locations to pay for the state taxes. Marcus also raised the need for a financial plan to pay J’s father. In addition, he wants to put J on a normal salary of $60,000 and prohibit him from touching the cash. Marcus is completely in control.

da-lobsta-deal

J emphasized that he should have the operational control of Da Lobsta. He has so much pride and declined the deal. The owner firmly believes that he can operate his company. No deal was made and Marcus left.

How Marcus Sees J

  • J has so much pride that turns to ego.
  • He missed the opportunity for the company and chose himself.
  • He does not deserve the help.
  • J is ungrateful and unwilling to change.
  • J does not respect the process.

Conclusion and Updates on the Business

da-lobsta-no-deal

No deal was made for Da Lobsta. Marcus thinks that J’s attitude and lack of disciple is hard to manage. He thinks he does not deserve the help.

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Rob

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Kensington Garden Rooms – The Profit Season 3 Episode 12

Marcus Lemonis Vs Kensington Garden Rooms

The Company: Kensington Garden RoomsKensington-Garden-Rooms

The Owner(s): Damion Merry and Simon Johnston

Website: http://www.kensingtongardenrooms.com/

Intro

In this episode of the profit, Marcus Lemonis visits Kensington Garden Rooms. Kensington Garden Rooms is a California-based custom gazebo company owned by two British co-founders Damion Merry and Simon Johnston. The company was established in 2012 and was turning profit designing, building and selling hand-crafted cedar gazebos.

Kensington-Garden-Rooms-old

But Kensington Garden Rooms has a price of more than $30,000 per product, Simon and Damion were excluding a big chunk of the market and leaving money on the table. Their arguable relationship was threatening the future of their business. Marcus believes that his help will make the business better and more stable.

Kensington-Garden-Rooms-old-shop

Marcus was disappointed to witness the co-owners bickering who work more. He checked the finances with them and their third business partner, Kab Benefield. Marcus was concerned with their idea to expand quickly. Damion broke down. Marcus posted a challenge for Damion, Simon, Kab, and Jack Owen, the carpenter. He wanted them to have a professional business plan and improve their business process after three (3) weeks.

Problems/Issues In The Business Found By Marcus

  • Damion and Simon keep on finger pointing.
  • Kensington Garden Rooms has no sophisticated process.
  • The company’s location is not very accessible.
  • The workplace/warehouse has no air-condition and ventilation.
  • No working rest rooms.
  • There was no enough money and space.
  • There was no business plan.
  • There was no inventory.
  • Kensington Garden Rooms’ owners wanted to expand too fast.

The Deal

Marcus sees some good in the future of Kensington Garden Rooms and he recognizes the efforts of Simon, Damion and Jack. During the meeting, he uttered his disappointment that Kab has 1/3 equity when he is not as involved in the day-to-day operation. He offered two (2) deals.

Kensington-Garden-Rooms-after-3-weeks

The first offer was $150,000 for 12% of Kensington Garden Rooms, but the dilution has to come from Kab’s ownership. The second option was to put $150,000 to buy out Kab’s ownership. Marcus included one condition to the deal. Jack should own 10% of the company. Everyone agreed to let Marcus invest $150,000 for 12% ownership and total control of the company.

Kensington-Garden-Rooms-deal

Later, Marcus learned that Kab was unhappy with the deal. He offered him $250,000 to leave the company. But Marcus has withdrawn his offer when Kab demanded more money for his son. They returned to the original deal.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Damion and Simon settled all their differences and trust each other more.
  • They organized their old workplace.
  • They looked for a new warehouse to rent.
  • They improve the assembly line and process.
  • Sufficient funds.
  • There is a professional business plan and the business has a clear goal.
  • A new inventory system was in place.
  • New tools and equipment are purchased.
  • The owners decided to improve and strengthen their business instead of expanding.
  • They do Mass Marketing, Target Marketing, as well as Commercial Companies.

During The Show…

To make things better and find bigger opportunities, Marcus brought Damion to True Value Chicago to promote Kensington Garden Rooms. They are both hopeful that they will get a deal. True Value was interested and would love to make a deal if the company can produce a high-value gazebo with lower price. Marcus asked Damion to work with Simon to make a high-quality gazebo within the budget range of 5,000 to 5,500.

Kensington Garden Rooms-ttue-value

After two (2) weeks, Marcus returned to Kensington Garden Rooms to check on the progress of the lower priced gazebo. He challenged Simon and Damion to make the gazebo better. The business partners figured it out and their relationship is stronger.

Kensington Garden Rooms-new-warehouse

Conclusion and Updates on the Business

Marcus was extremely impressed with the final product the Kensington Garden Rooms presented at Gold Value. The feedback from the store owner and potential customers are all positive. Marcus and the Kensington Garden Rooms team are all excited about the future of the company.

Kensington-Garden-Rooms-success

Kab is still an investor of the company and Marcus has no plans of buying him out. Marcus does not think that the Kensington Garden Rooms will expand all over the place soon. Simon, Damion and Jack are all appreciative with his help and direction.

I hope you enjoyed this review of this episode.

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Rob

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<< Visit the previous episode Blue Jeans Bar – The Profit Season 3 Episode 11

Blue Jeans Bar – The Profit Season 3 Episode 11

Marcus Lemonis Vs Blue Jeans Bar

The Company: Blue Jeans Barblue-jeans-bar-website

The Owner(s): Lady Catherine Reiss-Fuller

Website: http://www.denimandsoul.com/

Intro

In this episode of The Profit, Marcus Lemonis visits Blue Jeans Bar. Blue Jeans Bar is a high-end clothing and accessories retailer owned by Lady Catherine Reiss-Fuller. Lady was born and raised in New Orleans. She fulfilled her passion for the fashion industry in 2004 and opened a network of boutiques she called “The Blue Jeans Bar.” She combined her inspiration from her parents’ legacies and her MBA in fashion to build a business with a soul. Lady’s mom was a model and her dad was a business.

blue-jeans-bar

With some issues like lack of inventory and fast expansion, the Blue Jeans Bar struggled to stay in the business and managed the high debts. Marcus Lemonis was asked to help the company regain its composure and deal with the business issues. Marcus went to San Francisco, California to one of the Blue Jeans Bar stores with hopes of making a good deal with Lady.

blue-jeans-bar-before

He likes the concept of a denim retail with a bar setting but believes it can be better. At one point, the company had expanded to 13 stores, but when Marcus help was asked, there were only three (3) stores remaining.

Problems/Issues In The Business Found By Marcus

  • Poor management and no solid leadership.
  • Too aggressive business expansion.
  • Stagnant stocks.
  • Lady Fuller and her people are inexperienced when it comes to the retail business.
  • The stores have limited sizes available.
  • The profit margin is horrible.
  • The business does not have enough inventories.
  • The merchandise is all over the place.

The Deal

Because of the lack of proper management, the Blue Jeans Bar was on the verge of extrication and the business was in dire need of Marcus’ help. Marcus initially offered Lady $800,000 for 50% ownership. The money will be paid to the vendors and some amount will be spent as working capital. Lady countered by asking for $1,000,000 for 40% ownership.

blue-jeans-bar-the-deal

Marcus said he recognizes the fashion ideas and artistic skills that Lady has and finally offered her $900,000 for 50% of the business with Marcus fully in control of the spendings. Lady and Marcus settled with that amount and arrangement.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Bring the inventory in.
  • Take care of the vendors and supplies.
  • Make a significant change in the store’s appearance.
  • Pick and sell new products.
  • Flatten the management/organizational chart.
  • Introducing new inventory system.
  • Clearing out the basement and made great sales.
  • Decreasing the focus on denims and increasing more space for other products.

During The Show…

After Marcus announced the deal to the employees, so many things happened. Because he lived in Chicago, he decided to visit the Blue Jeans Bar Chicago. He was disappointed to discover the lack of leadership and inventory. He called the attention of Lady, Tasha, and Amy. He described the store as underloved, dirty, unsupervised and underresourced.

Marcus initiated to identify the demographics of the customers, clear the racks and basement. They made a big sale and bring some of the stocks to the other store. The Chicago store was closed and re-modelled and become the model-store. It was hard for Lady to let go of the “bar” concept and hesitated to have the bar removed. Marcus insisted to get rid of it to make more floor space.

blue-jeans-bar-avaition-nation

Marcus brought Lady and Amy to Aviator Nation to look for new products to introduce and sell. They picked new products that will suit the 25 to 40 demographics. When Marcus unveiled the new Chicago store as “Denim & Soul,” Lady was blown away. The customers are happy to find their sizes and style. It was a timely and fantastic change.

Conclusion and Updates on the Business

In the fall of 2015, the Blue Jeans Bar was transformed into Denim & Soul which features a diverse mix of pieces. Marcus Lemonis did all he can to help Lady and her people resolve all the issues like ineffective management styles, huge debts, aggressive expansion and more. Lady, Marcus, and together with the COURAGE b owners Stephanie Menkin and Nicolas Goureau, transformed the old Blue Jeans Bar to a more sophisticated boutique that features various products for modern day-to-day living.

blue-jeans-bar-new

Lady was so thankful and grateful for Marcus’ help. At present, the Denim & Soul have 6 locations; Chicago, San Francisco, Atlanta, Lake Forest, Dallas, and Jacksonville.

blue-jeans-bar-new-store

I hope you enjoyed this review of this episode.

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Thanks again.

Rob

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