Tuesday, November 28, 2017

The Profit - Tumbleweed Tiny House Company Update

Tonight on The Profit, Marcus Lemonis is in Colorado Springs, Colorado with hopes of making a deal with Tumbleweed Tiny House Company. Tumbleweed Tiny House Co. is a manufacturer of tiny homes owned by Steve and Bernadette Weissman that is struggling with multiple things such as a lack of leadership.  Tumbleweed Tiny House Co. has over $1,000,000 in debt and is on the verge of having to file for bankruptcy.

Let's take a look at some information related to Tumbleweed Tiny House Company as well as what kind of deal was made on the show.

News and Links Related To The Company:
  • Here are two preview videos of the episode from the CNBC website. Video 1, Video 2
  • Tumbleweed Tiny House Co. was founded in 1999 and Steve bought the business in 2007.  Tumbleweed has grown from three to 80 employees over the past five years. In February, the company transferred its headquarters to Colorado Springs from California. (Link)
  • Here is the Tumbleweed Tiny House Company website and Facebook Page which has almost 300k likes.  Home prices on the website start at about $65,000.
  • In 2012, Tumbleweed founder Jay Shafer left the company and created a new company called Four Lights Tiny House Company. (Link
  • In August 2017, Marcus Lemonis filmed a Facebook Live video and showed the interior of a tiny home where he would be staying overnight.  He said all of the tiny homes are hand-made and they make about 120 a year. (Link)

The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • The Deal - $3,000,000 loan to clean up the payables and get rid of debt.  Marcus would also get 75% of the equity in Tumbleweed.  Later in the episode Austin and Tracy were given some equity in the company.
  • On the Tumbleweed Tiny House website, management is listed and Austin is still with the company while Lee is not pictured.
  • The website currently offers 4 models of tiny homes - Cypress, Elm, Farallon, and Roanoke.
  • Marcus Lemonis confirmed that Tumbleweed tiny homes will be at Camping World in 2018. (Link)
  • UPDATE 3/2020 - Tumbleweed Tiny House Co. filed for chapter 11 bankruptcy with debt of at least $3 million and between $500,000 and $1 million in assets. They intend to renegotiate debts and plan to continue making homes. Marcus Lemonis' FreedomRoads Holding Co. is the company’s largest creditor and is owed $2.7 million. (Link)

*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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