S02.E10: Artistic Stitch

[Tara Ariano]

The owner of an embroidery and silk-screening company in Queens needs help dealing with a mountain of business debt.

[Primetimer]

Sure, Lemonis can save Artistic Stitch. But should he?

Read the story

[raiderred1]

NO! Those guys were clueless about business ownership. Fabio should be partnered with Marcus.

[rehoboth]

That was insane. I really thought that Marcus was going to walk away with all the dishonesty coming to light

Does anyone know what the deal is with the money that Marcus invests that is above and beyond the agreement? If he pulled out of the agreement due to, say, he discovers the books have been cooked, does he get that money back? Does he sue them for it?

The only worthwhile thing in the company is Fabio and the best thing about the show is seeing Marcus cut through the bullshit.

[abronfeld1]

Sadly, what Marcus was exposed to is very common in small businesses. Owners routinely conflate personal and business expenses and are usually only concerned about avoiding the IRS wrath and not that of other current or future partners. Sal knew exactly what he was doing, and his protestations about being confused or not wanting Marcus to walk away don't pass the smell test.

[attica]

 

If he pulled out of the agreement due to, say, he discovers the books have been cooked, does he get that money back? Does he sue them for it?

He is suing A. Stein meats for failing to turn over the 'Brooklyn Burger' brand. The money he sunk into Skullduggery is just plain lost.

 

I was gobsmacked at the CO shenanigans. They shouldn't even have been able to open their doors without it. Back when I was in retail and the company was expanding, getting the CO was always the worst of the last-minute freakouts. And it was always last-minute. I wouldn't want to suggest that government officials would delay on purpose or hold the prospect of not being able to open as an inducement for some, erm, considerations to be made, but I do know that our VPs usually had a pile of cash in their pockets on the days the inspectors came. In case of emergencies, of course.  That Sal opened and built out without one strikes me as way past craycray. I can't even imagine how that would happen.

 

I love the design-your-own shirt printer thingy. That's super cool. If I ran a kids' camp or school, that would totally be a class trip.

 

Sales guy who didn't know squat needs to be bounced, and pronto. I did get a kick out of his face when they told him he'd go on commission. Pure terror before he could rally and cover it up with a 'yeah, great idea, I'll be awesome.'

[toodles]

What the???? No C of O? Why throw good money after bad? When did this show become let's hug it out and who cares if you're a lying lier that lies? Bring back the awesome, who do you think you are, Marcus.
ETA:  Duplicate post

Edited October 22, 2014 by toodles

[GeminiDancer]

It wasn't Planet Popcorn type messy, but man this was messy. I think Marcus stuck around mostly for Fabio, who was keeping the business afloat. Fabio should have gotten sales guy's percent ownership. I was amazed that sales guy could even string two coherent sentences together.

[KHenry14]

I've never met anyone in sales who didn't know all his accounts. One wonders if that guy actually sold anything for his 100K a year.

 

And let's be honest, the expansion Sal put together in this building is one of the craziest ideas I've ever heard of. It just feels like Sal said "hey, I can make a fortune on this building, but it's too much for our normal business, I know, I'll sell pizza and put in batting cages. That will fill out the room" Yeah, brilliant guy that Sal.

[raiderred1]

 

 

I love the design-your-own shirt printer thingy. That's super cool. If I ran a kids' camp or school, that would totally be a class trip.

Sales guy who didn't know squat needs to be bounced, and pronto. I did get a kick out of his face when they told him he'd go on commission. Pure terror before he could rally and cover it up with a 'yeah, great idea, I'll be awesome.'

Attica, I'm right there with you on the cool design-your-own shirt thingy. Pure awesomeness.  

 

Sales guy, Nick, has sucked off the business long enough and all of his shares should have gone to Fabio.  When he told Marcus that he thought he did well under the circumstances I was screaming at my TV. IDIOT!  It was cringe worthy. 

We own a small business(35 employees) that my dad started back in the early 80's and my husband has since taken over after my dad retired and my husband's business partner is as useful as Nick.  He tells my husband he is on his way out and will cut his salary in half and sell his shares in the next year and a half and he doesn't do shit for the company.  He is the son of my father's original business partner and a more useless individual has never been born like this fool.  Every time I watch The Profit or Shark Tank it just reminds me how much our business partner sucks off of our very successful company. It's successful all due to my husband's extremely hard work. Sorry to get on a rant but sometimes I just gotta vent. hehe

[Cranky One]

Follow Marcus on Twitter. He always live tweets during the show and answers as many questions as he can.

 

He said Nic was 'getting  there' in selling and is a big fan of Faaaaaaaaabio!

[attica]

I visited Venice a couple of years ago, and took a gondola ride (as you do). My gondolier's name was Fabio. I was not mad at that. :)

[rehoboth]

I bet that Sal was allowed to do whatever he wanted - his grand vision of a pizzeria/batting cage/basketball court - by Nick because Nick could just sit back and collect a check.  I used to handle questions out of the office for the sales reps at my old job and boy did they know their clients.  And they were so happy to get a lead on a new client too.  I kept waiting for the sales guy in Nick to come out in that conversation and it never did.  Sal and Nick thought up a sweet deal for themselves and hoped to hold it together with string, chewing gum and a few prayers until they could cash in.  It's obvious that they don't care about the workers.

 

Thank goodness for Marcus (who Sal and Nick were planning to use to slide by on this) who is there for the workers.  I would hate to see someone who cares (Fabio) go down the tubes with Sal and Nick.

[nottopbravo]

Credit Card fraud buried under building expenses, $230 dinner, etc.  If I was Marcus I would have run so fast from this deal, I would have looked like the Flash.

[JasminePhyllisia]

Yes, I was especially bothered by that ridiculously expensive dinner buried under construction expenses. Huge red flag but seems like Marcus managed to turn things around.

Nick sure didn't seem like he was earning that 100k, but I winced at the firehouse scene. He mentioned he does his business online, so clearly cold calling on foot is not his forte, plus there was a camera in his face.

Best episode ever for me, I really enjoyed it.

[califred]

Why he didn't run from this is beyond me. I'd have left long before I gave them 600k

[Lola16]

Sketchy.  And more mismanaged than Stein meats.  A lot didn't ring true about this episode.  Where was Marcus' forensic accountant?  Why weren't the books reviewed more closely than a 1 page report printed by an office worker? 

 

That combine space was really a WTF.  It's either the guy wanted to lose money or he truly has shit for brains and thought he could just put some random ass businesses in a building and make money.

 

I think there was a layer of laziness mixed in with deception.

 

I would have walked.  And walked far & fast.

[kili087]

So Marcus holds the check he writes until the appropriate time ... however there are times when he 'looses' money like the printer for skullduggery - but the initial offer was pulled off the table and the check was canceled.

Marcus is a tactician, a politicain and a but of a dreamer. He tries to save jobs - People, Product, Process - but ultimatly he isn't GOD and cannot stop stupid from themselves. just as he cannot stop partners from backing out of deals and screwing up the process.

As far as Stein meats and the Brooklyn Burger - He bought the Brooklyn Burger to keep the business from becoming insolvent with in the week, it was a fair deal but like I said Marcus cannot stop ppl from being stupid and moronic.

[clod]

it looked like one of the partners was getting a steady paycheck, and the other one was not.

 

the sales guy better start looking for work.    with his sales ability, he has nothing to worry about.     ha.

 

---------------------------------

 

about the Brooklyn Burger deal, I'm not sure Steins owned that trademark (phrase) when the show was filmed

[Amarsir]

Yesterday I listened to a podcast interview with Marcus.  (Shark Tank Podcast, for the curious.)  They were discussing anything and everything, but two details relevant to this ep came up:

 

1) Marcus has a total of about 8000 employees across his enterprise.  Many wear uniforms.  If he ships their business to Artistic Stitch that alone will generate enough profit to cover any issues between now and the building flip.  That's why he felt secure enough to go ahead.  (And he said he believed the owner was genuine but flummoxed, different from other owners he's met.)

 

2) Based on Nick's prior sales rate, the commission plan would pay him about $60k per year.  So he was making some sales, and the new plan isn't cutting his legs out.  Plus Marcus said he was genuinely enthusiastic to learn how to sell better and saw it as an opportunity to earn more by increasing sales.

[glowlights]

Marcus lost me at "Queen's Vibe". I hope it really was his own idea and not concocted by an overpaid member of his marketing team.

[rehoboth]

I didn't really like the name "Queens Vibe" either.  Is that something New Yorkers say, ie "that's got a Queens vibe"? 

 

I did like the graffiti inspired artwork; totally the opposite of what embroidery looks like.

[glowlights]

I think Queen's Vibe is the sort of thing that a non-New Yorker says when they want to pretend they're a hipster but they can't afford a location in Williamsburg. I love me some Marcus but sometimes he comes across as a bit... um... I bet he thinks Celine Dion is edgy.

[glowlights]

Another one bites the dust. According to Marcus on Twitter (I am totally stalking this man) he no longer has anything to do with Artistic Stitch. His other words on the subject were "what a mess" and "more lies".

[qtpye]

"What a surprise!", says no one.  Does anybody know what happened?

[clod]

I don't even remember if he left with a deal in place.  haha.     the separate incidents during the show are memorable, though

[glowlights]

"What a surprise!", says no one.  Does anybody know what happened?

 

Supposedly he's saving the updates for the season finale. Hopefully this will be addressed.

[rehoboth]

I thought they did have a deal because Marcus brought them a uniform contract from one of his other businesses. Of course on this show, a lot of the handshakes become un-shook due to various circumstances (lies).

[RadioActiveRich]

 ... however there are times when he 'looses' money like the printer for skullduggery....

 

He may have lost the "remodeling" money from Skullduggery, but there is NO WAY he left that printer there. For one thing it was over $200K and for another he paid for it with a credit card. It hadn't been converted to a company asset, therefore belonged to Marcus. I bet all my marbles that Marcus sent a courier for that printer right-quick. ;)

[RadioActiveRich]

Marcus lost me at "Queen's Vibe". I hope it really was his own idea and not concocted by an overpaid member of his marketing team.

 

That whole thing kinda stunk. I hated the way they painted the inside and the sign on the building looked ghetto to me. The only two things Sal had going for him was the sign on the front of his building and Fabio. I'd like to know if Fabio kept his equity after Marcus left. BTW - buying the machinery Fabio was using and setting him up on his own would have cost Marcus WAY less time, money, and heartache. So, there's a plan. ;)

[glowlights]

He may have lost the "remodeling" money from Skullduggery, but there is NO WAY he left that printer there. For one thing it was over $200K and for another he paid for it with a credit card. It hadn't been converted to a company asset, therefore belonged to Marcus. I bet all my marbles that Marcus sent a courier for that printer right-quick. ;)

 

He did say on Twitter that the Skullduggery printer was returned. Too bad he couldn't leave the printer where it was and take the Skullduggery guys in for a trade. :)

[caligirl50]

Artistic Stitch/Queens Vibe is not listed on Marcus' investments/businesses on his website.  I wonder how they have stayed in business.