Tuesday, May 26, 2015

The Profit - Tonnie's Minis Update

On tonight's episode of The Profit, Marcus Lemonis is in Inwood, New York with the hopes of making a deal with Tonnie's Minis.  Tonnie's Minis is a struggling cupcake shop that has had to close a few of its stores.  They once had large corporate accounts, but now have a business that is in debt and that has been using Tonnie's wife's money to keep it afloat.  Marcus, who also owns the Crumbs cupcake chain was attracted to Tonnie's due to his build-your-own cupcake concept.

Let's take a look at some information related to Tonnie's Minis as well as what kind of deal was made on the show.

Tuesday, May 19, 2015

The Profit Season 3 Update Episode - Coopersburg Sports, Key Lime Pie Co., Artistic Stitch, and Unique Salon & Spa

Tonight on a new episode of The Profit, there will be an update on four businesses that have appeared on season two of the show.  Marcus Lemonis will be revisiting Coopersburg Sports, Key Lime Pie Co., Artistic Stitch, and Unique Salon & Spa and will give updates on which businesses have flourished and which have gone south since being on the show.

From The Profit Updates Page, some information is already known about each of the businesses, and during the episode any new updates will be added below.

Coopersburg Sports
  • Info already known:
    • Still open and has expanded into more product lines with Coopersburg Products LLC.  
    • They appear to have licenses with the NCAA, NFL and NASCAR
  • Other information revealed on update episode:
    • Marcus' actual money invested in the company was $1.4 million for payables, the new lease and new inventory.
    • Additional profit of $75,000 per year due to their new warehouse process
    • Sales increased from about $2 million to $3 million in a calendar year and the margins are also up around 12%.

Key Lime Pie Company
  • Info already known:
    • Has great online reviews and sells a lot of pies through their website
    • Has partnered with Crumbs Bakery (who Marcus is also invested in) to offer frozen Key Lime pie bars. 
    • Marcus has given Tami 25% stake in the company.
  • Other information revealed on update episode:
    • Went from losing $100,000 a year to making money.
    • Marcus' investment almost doubled due to issues he did not know about when the original deal was made.
    • Went from $1 million in sales to about $1.2 million in sales and margins increased from 15% to 35%.  Went from 100k loss to a 100k profit.
    • Jim and Alison were bought out and are not involved into the day-to-day operations.

Artistic Stitch
  • Info already known:
    • The business is still open but is not listed on Marcus Lemonis' website.  So this is expected to be a deal that went south.
  • Other information revealed on update episode:
    • Sal and Nick started taking a salary which wasn't negotiated.
    • They didn't use any of the money Marcus provided to pay the landlord past due rent, so Marcus cut ties.
    • The basketball court was back in operation and the printer was sold to someone.
    • Marcus gave Sal a 1099 tax form from his investment.

Unique Salon & Spa
  • Info already known:
    • Still open and both the salon and the hair care line "Erika Cole by Raquel" seem to be doing well.
  • Other information revealed on update episode:
    • Unique Salon & Spa was named one of the top 20 salons in America.
    • Carolyn is still acting as General Manager but is not always taking her paycheck.
    • Sales in 2014 were $1 million and the projected sales for 2015 are about $1.4 million and margins have increased.

Tuesday, May 12, 2015

The Profit - SJC Custom Drums Update

On the season 3 premiere of The Profit, Marcus Lemonis is in Southbridge, Massachusetts with the hopes of making a deal with SJC Custom Drums.  Despite a massive following, they have issues with inventory, turn around time for their product, low margins and working capital.  Mike and Scott are two brothers that founded the company and Mike actually bought out Scott because they could not coexist.

Let's take a look at some information related to SJC Custom Drums as well as what kind of deal was made on the show.

Saturday, May 9, 2015

All CNBC's 'The Profit' Business Updates

I have put together a list of ALL businesses that have appeared on The Profit, and whether they are still open and if Marcus Lemonis is still invested in them.  This list will be kept up-to-date and will be updated as more episodes air and when businesses are closed, sold, etc.

There is a tab at the top of the webpage called "CNBC's The Profit Updates," or here is the direct link to the page.  This page has each episode listed, along with the status of the business, whether Marcus Lemonis is invested in the business, and any relevant links.  So head over to there to see the detailed analysis of all businesses that have appeared on The Profit.

Also, keep an eye out for detailed updates for upcoming episodes and past episodes on this blog and Follow Us on Twitter or Like Us on Facebook.

Monday, May 4, 2015

The Profit - A. Stein Meat Products Update - Settlement Reached In Lawsuit

Photo - CNBC
Marcus Lemonis and A. Stein Meat Products, which was featured on season 2 of The Profit, reached a settlement on April 29th, 2015 in their ongoing lawsuit.  The settlement terms were kept confidential, so it isn't clear what was agreed to by both parties, but here is a link to the court document.

For a little background on what happened before, during, and after the episode aired, here is a little timeline with some information:

  • The episode aired on March 4, 2014 and on the show Marcus offered about $200,000 ($190,000) for the trademarked brand Brooklyn Burger.
  • On March 5, 2014, Marcus posted the following message on his Facebook page:
  • "Since there are great opinions being offered up that represent both sides I thought I would clear the air.

    The offer that was made for one million is based on representations made by the two owners. They provided me data and told me what balances were. The whole they represented was around 500k. Additionally, the accounting system used here was antiquated.

    Let's be clear about this. At no point did I accuse either of them of lying. They simply told me one number and it was off by two million. All parties involved know that the check doesn't get cashed until I sign off on the financials and sign paperwork.
    Upon learning of the disastrous discrepancy I offered to still stay and help but told them it wasn't a good investment for me.
    I then was asked for money after I pulled out of the deal to fund payroll and other bills. I clearly told them that I can't just give them money. We agreed that I would buy brooklyn burger which only generated 1 million of the 50 million of sales they had. I wired the money the next day on a handshake without paperwork because they told me their word was their bond. They were able to make payroll and cover bounced checks. That was a month ago. We still have yet to finish the transfer. They have been unavailable by phone and have been busy. As you can see from the article that ran Monday, there was no mention of the delay in following thru. I trust that they will comply with our agreement. A number of negative comments on here are from family of the owners. I sympathize with the situation and as I have told them would meet in person with them including the owners.

    I would respectfully request that we don't attack their company or the owners. Business is business and it should never become personal. While I'm frustrated and disappointed in how things are being handled I have confidence that people ultimately do the right thing."
  • In May 2014, Marcus Lemonis filed a lawsuit saying he paid them $190,000 for Brooklyn Burger and never received anything.  The A. Stein owners claim the money was a loan to help out with their working capital needs. A. Stein meats was also in negotiations to sell their business to King Solomon and were going to include Brooklyn Burger in the sale.  There were 5 counts against A. Stein Meat Products and King Solomon. (All documents relating to the case)
  • According a court document (page 4), in October 2014, A. Stein defaulted on all of its debt and their assets including Brooklyn Burger were foreclosed upon by First Capital. First Capital sold the Brooklyn Burger trademarks to Hercules Food Corporation.
  • In March of 2015, the court ruled that a filmed verbal agreement does not equal a written contract and counts I through III and count V of the lawsuit were dismissed. Count IV remained open. (Page 12)
  • April 29th, 2015 - A settlement is reached on the remaining count (IV) of the original lawsuit, but the terms of the agreement are not known.

It appears that Marcus wanted the Brooklyn Burger brand more than he wanted his money returned as the documents say he was offered repayment by A. Stein.  If the terms of the agreement are made public, this post will be updated with that information.

UPDATE - In 2020, A. Stein Meat company owners got in trouble and plead guilty to federal charges of conspiracy to commit wire fraud.  This was because they were putting fake labels on their low-grade beef to inflate the prices.  They were removing their "choice" quality stamp and replacing with a counterfeit "prime" quality stamp.  Owners Howard Moya and Alax Buxbaum are now facing up to 20 years in prison and a criminal forfeiture of $250,000. (Link)