Wednesday, 10 January 2018

The Profit: Marcus Lemonis Walks Away Before Investing In Rayjus, Gives Bentley’s Pet Stuff Update


This week, Marcus Lemonis travels to Illinois to help Rayjus, a sports apparel company that is behind on orders and facing a growing amount of debt. According to CNBC, the business “is literally a sweatshop, the employees are up in arms, and one of the owners has a troubling side gig.” If Lemonis cannot get the owners to overcome their increasing number of issues, the company could meet an untimely end.

Visiting their warehouse, Lemonis immediately notices that it simply looks like a storage garage. He is also put off by the working conditions, which he finds to be extremely hot in the working area, yet cool in the office space. He then meets owners Ray Odom and Justin Romines, who explain how their apparel process works. Lemonis thinks the products are “cool,” but finds their business model of custom printing troubling. He doesn’t view it as a “core business.”

Odom, Romines and Lemonis then tour the factory, where they review the production area and products, which include jockstraps and goat leg warmers. He views those products as “off the mark” and non-scalable. Several employees agree that the unconventional items don’t compare to the sales of other apparel. They also share that the owners go fishing every Friday and the business is out of money.

Another employee then shows Lemonis a video that she recorded of an empty office, prompting him to speak privately with Romines. He reveals that they have fallen behind on paying their taxes. Odom then shares that, at his gig as a radio DJ, his personality is “a sexist, egotistical, racist pig,” which makes Lemonis visibly uncomfortable.

Lemonis ultimately decides to walk away from making any kind of deal with Rayjus.

He then switches gears and gives an update on Bentley’s Pet Stuff, a company that appeared on the show last year. The successful deal has yielded more locations across the country and Lemonis reveals that his initial $1 million investment grew to more than $50 million. The owners then show him a $17,000 machine and share with him some of the details of a new store opening. Lemonis notes that the company still has a “process problem” in that certain information was not shared with employees. He wants to rebuild the process.

After reviewing their financials, Lemonis says he wants to focus on building a line of new products and ensure that a true partnership runs smoothly between the husband-wife duo. After visiting Natural Pet Market, they find that while the cost to acquire the business is more than opening a new store, it is still a valuable deal.

They then visit a company that focuses on pet clothing and accessories and review potentially good products for their stores. Gio has his own opinions about what should be chosen, but he fails to ask Lisa, who is supposed to pick the products, what she thinks. Lemonis is impressed that Lisa ultimately picks products that have the potential to yield good margins.

Lemonis and the owners then review designs at a pet cleaning products company, where Gio again takes over. Lisa convinces Gio that she has everything under control, which really shows Lemonis that she can be a leader. Gio agrees to stay out of the way and, following that discussion, he becomes better at communicating with and involving his team in decisions.

Back at Natural Pet Market, they come to an agreement on the terms of the acquisition. Lemonis says he is impressed that Gio actually involved his staff and that Lisa showed leadership throughout the process. He adds that he notices a huge difference in the couple.

See how social media reacted to Rayjus on “The Profit” and the Bentley’s Pet Stuff update below:

Social Media Reacts to Rayjus’ Appearance on “The Profit,” Bentley’s Pet Stuff Update

“The Profit” airs every Tuesday at 10 p.m. on CNBC.

Do you think Marcus Lemonis made the right decision in choosing to walk away from any deal with Rayjus? What are your thoughts on the owners? How did you feel about the Bentley’s Pet Stuff update? Sound off in the comments section below!

Source: B2C

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