Tuesday, November 17, 2015

The Profit - Kensington Garden Rooms Update

Tonight on The Profit Marcus Lemonis is in El Dorado Hills, California with hopes of making a deal with Kensington Garden Rooms.  Kensington Garden Rooms is a company specializing in hand crafted luxury gazebos and was started by two friends from England.  Their relationship is currently at a breaking point due to the business having inefficient processes and poor workplace conditions.  Their warehouse is in the middle of an almond farm and there is no working bathroom in the facility. 

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

News and Links Related To The Company:  
  • Here are some videos from the episode on the CNBC website - Video 1, Video 2, Video 3, Video 4.
  • Here is the Kensington Garden Rooms website, and the About Us section of the website says they are "the number one manufacturer of luxury hand crafted, cedar garden rooms/gazebos based in Northern California."
  • Here is the Kensington Garden Rooms Facebook Page, and they are advertising their appearance on The Profit guaranteeing lots of drama and emotion.
  • Kensington Garden Rooms has ten total reviews on Yelp (3 filtered), and all of them are 5-star reviews (out of 5) with people raving about their gazebos. (Link)

The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • Marcus gave Kensington Garden Rooms three weeks to find a new facility and come up with a plan that uses some of their money in the bank.  Marcus would come back after the three weeks and decide whether or not to make a deal.
  • Marcus' initial offer - He gave them 2 choices -$150,000 for 12% of the company but dillution comes from Kab's ownership and $150,000 to put into the company, and Marcus and Kab split his share. 12% each.  Jack owns 10% of the company as part of this deal.
  • The Deal - $150,000 and Marcus and Kab will own 12% of the company each.  Jack increases his ownership to 10% of the company as part of this deal.
    • Later Kab was offered to be bought out of his share percentage by Marcus for $250,000, but Marcus took that off the table after Kab wanted money for his son.
  • The highest priced Gazebo currently on the True Value website is $395.  It doesn't appear there are any Kensington Garden Room gazebos on the True Value website.  
  • The specific local True Value Store (B & C True Value) has posts on their page about The Profit, so that is probably the only store they were sold at. (Link)
  • Marcus did a Periscope after the episode (Link), and revealed some things.  He said Kab is still invested in the business and Marcus has no plans of buying him out.  He also said he doesn't think this business is scalable to expand all over the place. 
  • 12/7/2015 - It appears Kensington Garden Rooms is installing gazebos at Marcus' Camping World locations (Las Vegas, Valencia)

*To see how all of the businesses from The Profit are doing, go to the The Profit Updates page, and also Like us on Facebook or Follow Us on Twitter  to stay up to date with all things involving The Profit.   

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