Transcripts For CNBC The Profit 20170530

Will be behind her. My name is marcus lemonis, and i risk my own money to save struggling businesses. Were not going to wake up every morning wondering if we have a job. Were going to wake up every morning wondering how many jobs we have to do. Its not always pretty. Everythings going to change. Everything. But i do it to save jobs, and i do it to make money. This. Lets go to work. Is the profit. In 1996, susana monaco launched her namesake label, a collection of womens apparel marked by clean and contemporary designs. Susana the front is narrower than the back. Lemonis she had grown up working at her familys cutandsew factory and then engaged them to help her with manufacturing. Before long, she was in thousands of retailers across the country with revenue exceeding 10 million. Anna this is the bestselling for holiday. They love it. Lemonis but the Great Recession dealt the label a severe blow, and susana has been unable to reverse the damage. Susana stay in business or not stay in business thats the choice. Lemonis today, sales are off more than 50 from their peak. Susana this is devastating. Lemonis and the company is bleeding money. Im looking to grow my fashion business, and despite susanas troubles, im impressed by the success shes had in the past. If i can help get the brand back on track, im confident she can have an even brighter future. Anna hi. Lemonis hi. Anna how are you . Lemonis how are you . Im marcus. Anna anna. Lemonis nice to meet you, anna. Anna nice to meet you. Lemonis is this the showroom . Anna yes, please come in. Lemonis okay. Anna marcus, this is susana. Lemonis oh, hi, susana. Susana hi. Lemonis marcus. Susana hi, marcus. Nice to meet you. Lemonis how are you . Nice to meet you. Susana yeah. Lemonis dont be nervous. You guys manufacture your own stuff . Anna yes. Susana yes. Anna we manufacture in our new jersey factory. Sue is responsible for design, and im responsible for all operations and sales. Lemonis so you handle production and sales . Anna yes. Im very capable. Lemonis thats interesting. Susana the front stuff is too emotional for me. Anna sue is the Creative Engine of the company. Susana yeah. Anna so we dont want to expose her to all the you know, all the unpleasant stuff. Susana i dont like to be in the front of things. Lemonis okay. Susana i like to be in my world working. Lemonis youre the artist. Susana yes. I just. Anna shes very takes everything very close to heart. And, you know, in operations, every day there is a problem. There is i mean, every second there is a problem. Not every day every five minutes. Lemonis right away i noticed this very interesting dynamic between the two of them. Annas the employee, but shes dominating the conversation, and susana, whos the owner who has her name on the door, shes standing there like a bystander. Why dont we look at the product . Susana okay. Lemonis lets do that. Whats the demo . Susana i would say that its a cross section. Theres the young girl in there. Theres a middle girl. Theres a working girl. Theres a lot of girls in there. Lemonis is that code for saying its all over the place . Susana um, maybe. Lemonis look, you would expect a company like this to have a core lineup, a clear direction on exactly what they were selling, and there would be some consistency to it. Whos your customer for this . Anna well this is a young doll. Susana 20s, 30s. Anna 20s, not even 30s. Lemonis but when you look at her lineup here, its all over the place. Theres a dress made of this material and pants made of that material, and theres no story to the lineup, no collection. Ill tell you whats interesting about this rack. This is a very easy crossover to somebody who likes to live in athleisure wear. Susana yes. Anna yes. This is supplex, which is our base fabric. Lemonis okay. Thats how susana started the company. Lemonis it has a spandex feel to it. So it helps people with shape and curves. Susana shape is great. Lemonis but thats a very different fabric than this. cause this is not supplex. Whats the problem . Susana its a little dry. The economy crashed, our price point changed, so we had to work accordingly. Anna supplex fabric is unaffordable. Susana the supplex is almost 10 a yard. Thats the kicker. Lemonis so this fabric is how much a yard . Both about 4. Lemonis what are the overall margins . Susana the overall margin of the company is. You know, not great. Its in the 40s. Lemonis in a business like this, your margin should be no less than 50 . And whats even more surprising is they should be even higher, considering that theyre using lowquality materials. What it really tells me is that there has to be terrible inefficiencies in their process that ill have to look out for. Anna okay, so this is the patternmaking area. Everything is done on the computer, all patterns. Lemonis and youre literally making to order. Susana yes. Lemonis sell an order, cut, sew it, and ship it. Susana yes. Lemonis and so, when it goes to the cut and sew shop, they work off this pattern. Susana yes. My dads manufacturing plant. Lemonis oh, youre at your dads building. Susana yes. Lemonis so youre paying your dad rent. Susana yes. Lemonis so i should think about the factory as a shared building. Susana yes. Lemonis . Where your employees make your clothes. Susana yes. Lemonis . And his employees do thirdparty manufacturing for other people . Susana yes. Lemonis how often do you how much time do you spend there . Susana i dont spend any time there. Lemonis you dont go see what you dont inspect whats happening . Susana no. I used to, um, go, not. Lemonis whens the last time you were there . Susana the last time. Lemonis last week . Susana no. No. No. Anna no. Lemonis last month . Susana i would say, months. Lemonis do you go, anna . Anna i dont go. They dont like us. Lemonis your employees dont like you . Anna her brothers. Lemonis what do the brothers have to do with your dads building . Susana theyre running the factory. Anna theyre running the factory. Lemonis so you have no interaction with the people that actually make your clothes . Susana yes, no contact. Lemonis so this is a business relationship, contract labor, where youre paying for all the employees and all the work thats done. Thats your only source of manufacturing the products. But susana never actually goes to the factory that she pays the employees in . Because shes got some problem with her family . Im gonna spend a few minutes with susana so i can get to know her. Anna yes. Mmhmm. Lemonis why did you get into this business . Susana i was born in this business. Lemonis you were how . Susana my dad moved here from italy in the late 50s, early 60s. He started manufacturing clothing. I grew up in that factory. Worked there through high school. I did the designs. Lemonis and he manufactured. Susana he manufactured. Lemonis and then what do you do next . Susana i worked with a few really great companies. Mm, didnt really feel. I dont know, fulfilled enough, so i created the collection and it was going incredibly well. Lemonis whats the biggest year that youve had . Susana 13 million, then my father decides that i should split the stock of my company with my brothers equally. Lemonis why . Susana because he wants his family to be secure in life. This is oldschool way of doing things, cause all of my lemonis okay, hold on a second. Susana yeah. Yeah. Lemonis he walks up and says, i know you started this business by yourself, youre doing amazing, and i want you to take twothirds of the business and i want you to give it away. Susana yes. Lemonis to your brothers . Susana yes. Lemonis who are not in the business . Susana theyre actually working at the factory. Lemonis and so their payroll is coming from your production. Susana yes. Yes. Paying them a salary. Lemonis and did your brothers put any money in your company . Susana no. Its not fine, but. Lemonis so, i feel like youre being kind of, like, shaken down. Anna, whats your biggest worry . Anna the problem here is that we afraid that the brothers, theyre gonna screw us, you know . Because we dont trust them at all because they think that they deserve stock in the company, that this is their birth right. Lemonis they deserve in stock in the factory. Anna no, in susana monaco. Lemonis why would they deserve stock here . Anna well, good question. Lemonis now, are you with partners with susana in this business . Anna no. And the thing is that its really upsetting me, because i think it should be 50 50 because i carry a lot of stuff. Lemonis you get paid as well or no . Anna yes. Lemonis you do get paid. Anna yes. Lemonis similar to what susana makes . Anna no, im paid more. Her salary is 100,000. My salary is 175,000. I feel why should i cut my salary when im doing all the work, and i dont have partnership papers . And i said that to her straight out. I said, its one thing if i have 50 50. But now, i i mean, technically, im an employee. Lemonis so anna either gets twice as much as susana makes or she gets half the company . It feels like susana is being run into the ground all over the place. Her family wants a piece of the business. Her employees want a piece of the business. Its ridiculous. Whats your biggest concern about the business . Anna well, biggest concern is, of course, were not making money. I mean, honestly we didnt make any money since 2009, so. Lemonis no money. Anna yes. Theres no cash flow in the company. So what happens is we ship in the world, we ship in the world, there is no cash, so this is super stressful. Lemonis so, you know, when i met with anna individually, she told me she thought she should own 50 of the company. Susana yes. Shes making a lot of decisions here. Im not, you know, the pit bull. Shes the pit bull. I need a pit bull. Lemonis yeah, but your pit bull isnt supposed to bite you. Susana no. Lemonis theyre supposed to protect you. Susana yeah, but lemonis the purpose of a person like that is to protect you and. Susana yes, but she does in every other sense. Its not about bullying, its about. Lemonis but i feel like youre giving me a rationalization. Susana im not rationalizing, its the reason. Lemonis . Of why you let her behave that way, though. Even when were talking, she always talks over you. Shes not gonna take a cut in pay and she wants 50 of the business. Its like, okay, okay, hey, just slow the [bleep] down. Susana i just i dont know how i feel about that. Its a very, very mixedfeeling thing. Lemonis what i want to do is id like to have you bring your financials with you and i want to go to the factory. Holy cow. This place is huge. All these people work for you . This is gigantic. Susana yeah. Mario susana. Susana hi, pop. Mario please, go punch the timecard. Susana this is my father, mario. Lemonis mario, how are you, sir . Im marcus. You have a wonderful daughter. A lot of how many people work here . Mario maybe 85, 90. Lemonis wow. Can i have a tour . Mario okay. Lemonis all right, lets go. Lets take a tour. How many pieces a year come out of here . Susana with us, its about 75,000. Lemonis holy [bleep] susana yep. Lemonis what is all this . Susana this is just old inventory. Lemonis so does all this inventory sit on your books . Mario look how much stuff shes got around here. Susana yeah, but its its not a lot. Lemonis im sorry . Susana well. Lemonis i already knew from the showroom that their collection was all over the place. But this, there is product everywhere, rejected by customers. Were you drunk or something when you did this . This is what happens when you dont have a clear focus on your core product. Mario in each department, we have a foreman. In the cutting department, we have a foreman. Lemonis where are your boys at . They off today . Mario uh, no, theyre budging around. I dont know. Theyre very very busy. Lemonis id like to meet them. Can you take me to them . Mario uh, you know what . Susana i already know whats going on here. The brothers think i owe them their birth right. Lemonis so neither of them will talk to me. Susana no. Mario supposed to be equal partnership. Lemonis and so, the only way that they would agree to meet me is if susana gave away twothirds of the company . Mario well, originally, its what youre supposed to do. Lemonis whose business is it . Whos selling . Whos designing . The boys are designing . Mario well, its not the point. Susana they think that i owe them more than i owe them. They theres no respect here for me at all. Theres no respect. Wheres the respect . And what did i do . I created a business, made a lot of jobs, and now everybody hates me. Im never gonna be in business with them again. And im not gonna have them as my brothers, because this is bull[bleep] its [bleep] total bull[bleep] excuse me. Lemonis you got to get those boys down here. Go ask them one time. Mario i already asked them. Lemonis one time. One time. For me. Just you know, i wont go up there. You go ask them one more time. Theres a very simple reason that im asking mario to bring his sons down. If im gonna be in business here and im gonna have all the products made here, its not unreasonable that i want to meet them. Mario mario left. Dominic, he said, no. He dont want to come down. Lemonis mario left . Mario yeah. Lemonis okay. And dominic said no. Mario no. Lemonis wow. Look, its clear to me that the situation here is not ideal. The dynamics are really off. And if im gonna move forward with susana, im gonna have to put a lot more thought into it. But before any of that happens, i have to dig in and see if theres anything even here. Did you bring your financials with you . Susana yes. Lemonis why dont we sit down and go over them and well see . Okay. Start with the balance sheet. So 545,000 of inventory . Susana yes. Lemonis all right, so you could liquidate all that and generate some cash. Susana yes. Lemonis how much debt is in the business . Anna just the payables. Lemonis are there any bank loans . Anna we dont have any bank loans. Lemonis so the accounts payable are the real problem . Anna yes. Susana yes. Lemonis and thats 719,000. Anna yes. Lemonis so 545,000 of inventory, 700,000 of debt. So how much of this 700,000 is a problem . Anna i would say half a million. Lemonis is a problem. Anna yeah. Lemonis so if your payables are paid and all youre doing is selling the inventory, youre gonna have a lot of cash coming in. Anna yes. Lemonis lets look at the revenue. So last year, 6. 5 million in business. Gross profit of 2. 6 million, which is less than 50 and not good. 3,000,000 in expenses, and the business lost 361,000. If the margins were just what they should have been at 50 , it would have been 3,250,000 in gross profit, a difference of 650,000. Instead of losing 361,000, you would have made a couple hundred. cause 6 million in business, thats a lot. This is a margin game. Make a good product. Have a good supply chain. Have good margins. Control your expenses. Survive. I have enough Financial Information to at least understand it better. And maybe you and i can get together tomorrow. Thank you very much. Okay. Lets go forward. The financial statement, last year the company lost 361,000. Thats a lot. Some of that is attributable to the fact that you had low margins. What i like about the company is that the primary product, the supplex product, is timeless. It works for everybody. So id like to make an offer. 600,000 for 50 of the business. It pays all the bills, it brings the vendors current, we get back to producing, we get back to selling. With a lot of inventory where you can have enough working capital to do sampling and product testing and trunk shows. And were moving down the road, okay . Susana i am not sure how i feel. I need to know how annas going to be played into this, because shes a really, really important part of this component. Lemonis shes not gonna get 50 of the business, like she thinks shes entitled to. Thats never happening. Susana oh, my god, no. Its gonna be bad. I think this is gonna be a problem with her. Lemonis then she can quit. Susana oh. Anna unlike you, respect means more to me than money, than anything else. You know what im saying . I want to see you in my position. Susana im already in your position. Anna i dont think so. Lemonis you are not the owner of this business. Anna i didnt say i was the owner. Lemonis and your behavior is unacceptable. I put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. Fromi wanted to seeved, wthis great country. My last wish is for you to do it for me, as a family. Love, grandpa. Let us be lovers, well marry our fortunes together older grandaughter itll be alright. I know. Grandson how did you meet grandpa . Grandmother actually on a blind date. [ laughter ] i wish he was on the trip with us. Hes sitting right between the boys in the back of the car. [ laughter ] america all come to look for america all come to look for america lifes as big as you make it. The allnew 7seater volkswagen atlas with americas best bumpertobumper limited warranty. Susana i need to know how annas gonna be played into this. Lemonis shes not gonna get 50 of the business. Susana oh, my god, no. I think this is gonna be a problem. Lemonis then she can quit. Susana oh, my god. Lemonis because she gets paid almost double what you get paid. Susana yes, i know, but. I know. Lemonis we got to take these steps. We have to solve the first problem before we can solve the second. So, 600,000 for 50 of the busins. Susana i mean, this sounds like a. A great opportunity. Lemonis and you got the talent for it. And i have the distribution for it. You know that im 100 in charge, right . Susana yes. Lemonis do we have a deal . Susana yes. Okay. Lemonis hey, guys, were gonna have an employee meeting. Yesterday, i made a deal to invest 600,000 into this company. The moneys gonna pay the bills, and were gonna invest in product development. And then were gonna look at our business model. The goal is to shrink the line and get rid of the things that dont sell and get out of the business of losing money. Even though there are issues with susanas brothers, ive decided to stick with the factory, because i want as little disruption with the manufacturing process as possible. And while the brothers are still refusing to meet with me, theyre at least staying out of the way. Its the fathers factory, and he and susana seem to have a really good working relationship. So thats good enough for me. Its important for everybody to know that theres a Bright Future ahead and that were here to save jobs and make more money. [ cheers and applause ] all right, lets go to work. Thank you. So lets think about this for just a moment. If i wanted to see the entire susana monaco collection. Susana oh, theres thousands and thousands. Lemonis theres thousands . Susana thousands. Lemonis i already know that susanas collection lacks focus, but before i work on that, i want to look at how susana manages her inventory, how the retailers order product, and how the Company Actually fulfills those orders. If there are inefficiencies in any of those processes, that could explain why the margins are low. So where can i see one finished garment of every style. Susana most of them would be in the showroom right now. Anna yes. Whatevers finished is packed immediately and gets shipped to the customer. Susana is sold. And shipped. And they wait till last minute to place orders. Anna yes, exactly. Everybodys waiting the last minute to place orders because we know they know. Susana they can get it. Anna but at the same time, us as a company, its very hard. Lemonis you cant forecast. Anna exactly. Susana no, no forecasting. Anna we sitting there, like, are we gonna get the dollars, because theyre not prebooked . Lemonis you dont know. Thats the worry. Anna yes. Lemonis and so this garment, i can get this ondemand in two weeks . Susana mmhmm. Lemonis what is my price if i prebuy it three months before . Anna its the same. Lemonis its the same. So why would i why would i do it . What you could do is you could build a pricing model that would incentivise them to preorder versus order on demand. Were gonna create three pricing strategies. Quick ship will have one price, prebuy will have a price, and then custom is gonna have a slightly elevated price. Moving forward, were gonna offer our retailers three ways to order products, thus eliminating inefficiencies, improving margins, and improving cash flow. First were gonna give buyers a way to preorder product, allowing us to buy fabric in advance, lowering our costs, and giving predictability to our manufacturing process. Secondly, were going to have a quick ship line. That will allow retailers to order product thats already in stock, improving our cash flow. Third, theres custom on demand, the historical way susana sold products, but theyll pay a small premium for it. Now we just need to decide what products were offering. I want you guys to pick the top 100 bestselling styles. Anna yeah. Lemonis and then once we do that, were gonna narrow the whole line down to 30. Were gonna produce it and were gonna stock it and were going to sell quick ship. Anna no. Lemonis why do you why do you not like shipping quick ship . Anna yeah, but what if it doesnt sell . Lemonis if it doesnt sell, then we liquidate it. You okay, anna . Anna i need to step out. You can sit here. Lemonis all of a sudden, anna just darts off and susana goes scurrying after her. And before i know it, theyre just arguing. Anna thats [bleep] [bleep] im always getting pushed to the side. Susana youre not getting pushed to the side. Anna i just did. Susana can you please. Anna the problem with me is that i need to respect, which i dont see. Lemonis i was like, wait a minute. I thought we were just talking about inventory here, guys. Whats the issue with anna . Susana she wasnt given any type of recognition. I think she i think she should get recognition. Lemonis whats the recognition she should get . She makes more than everybody else. You are the owner of the company. You got to have a backbone. Is that hard for you . Susana yeah. Lemonis why . Susana it is. Because ive never put myself front and center. Lemonis why . Susana being beat down from, you know. Lemonis who . Susana anna. Im just saying, just the acknowledgement and, you know. Lemonis this is not your issue. This is her issue, and youre being her mouthpiece right now. Lets grab her and ill meet you up there. Susana all right. Anna i dont have to comply to this abuse anymore. Susana nobody abused, nobody said anything. Anna yes, it is. Susana what do you think that is gonna happen now . Anna you always need to stand up before anything. Susana i dont understand what your point is. Anna respect means more to me than money, than anything else. You know what im saying . I was busting my balls for 11 years to get this business up, without staff, by myself, working to 12 00 midnight. Im working all weekends. The minute i get home, im working, because its 12 hours difference. Lemonis you are not the owner of this business. Anna i didnt say i was the owner. Lemonis and your behavior is unacceptable. Id like you to go inside. This is gonna be about putting you in the forefront. Susana this is very difficult. Its really stressful to. To. Including the fullsized introducingsprintercedesbenz family of vans. And the midsized metris. If these are your wingtips. If this is your gourmet latte. Then these are your vans. Vans for professionals. Strictly professionals. Best commercial van residual value according to alg and starting at just 25,995. Mercedesbenz. Vans. Born to run. The uncertainties of hep c. Wondering, what if . I let go of all those feelings. Because i am cured with harvoni. Harvoni is a revolutionary treatment for the most common type of chronic hepatitis c. Its been prescribed to more than a quarter million people. 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With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. Yet up 90 fall short in getting key nutrients from food alone. Lets do more. Add one a day mens complete with key nutrients we may need. Plus hearthealth support with b vitamins. One a day mens in gummies and tablets. Lemonis you are not the owner of this business. Anna i didnt say i was the owner. Lemonis and your behavior is unacceptable. Anna oh, really . Lemonis anna is demanding respect, which in my opinion is code for, hey, susana, give me half the business. Well, that isnt gonna happen. Mario thats terrible. Lemonis im appreciative of annas work, but this attitude is not gonna fly with me. I think Going Forward in order for all of this to work, everybodys got to be treated with respect. Everybody. And so, were gonna stick together and were gonna move forward. This was the task of coming up with 100 bestselling styles. I actually want to build a core catalog, so how many pieces are actually here roughly . Susana 70. Lemonis 70. So, susana, why isnt there 100 here . Susana we we just were not talking. Anna i just wasnt talking to her. Not talking. Susana she wasnt involved yesterday. Lemonis so you had to handle this on your own, and we ended up with this. Susana yeah. Yeah. Lemonis are you guys talking now . Susana we just started, like, this moment. Lemonis right now . Susana yeah. Anna yep. Mmhmm. Lemonis okay. Stephanie hi. Lemonis hey. Stephanie how you doing, marcus . Lemonis this is stephanie. Stephanie hi, stephanie menkin. Nice to meet you. Anna hi. Anna. Nice to meet you. Lemonis stephanie is a woman that i partnered with a couple of years ago. She was one of the original owners of courage b. And she runs my entire fashion group. Shes gonna be very involved in the process not only today, but Going Forward. So lets clear the back wall and lets lets move the process along. Susana all right. Lemonis this is what we know as the bestselling unit in the company, and the bestselling unit is black. Next the tube top. This is like one of your best sellers ever, right . Susana yes. Stephanie great. Lemonis how many units did you sell . Stephanie almost 3,000. Lemonis 3,000. Anna and everybodys retailing this. Lemonis ultimately, the products that we choose here today will build a collection of core products. Stephanie fantastic. Susana yeah. Stephanie great basic. Lemonis and thisll give us a clear way to have products at a great price and always in stock. Quick ship . Stephanie how does this sell . Anna its not great. Stephanie no. Lemonis quick ship . Stephanie yep. Lemonis all right. Stephanie no doubt. Lemonis were gonna finish the pool, and were gonna look at what our margins have to be and were gonna figure out how were gonna get these made at these prices. So you guys go through all these and keep sorting, and ill be back. Lemonis good morning. Susana good morning. Lemonis so i want to really spend more time thinking about the quality of the fabrics and amping up the details. Today im taking anna and susana to premiere vision in new york, a Global Fabric expo where manufacturers come from all over the world. Its a great place to negotiate directly with vendors and find fantastic fabrics. This is nice. Its got a lot of stretch. Susana yes. I love japanese fabrics. I really do. Lemonis this is really pretty. Can we get a sample of these . Woman sure, of course. Lemonis okay, and whats the price per yard . Woman this one is about 6 to 7. Lemonis okay. Susana when you make these in dresses, it fits really well. Lemonis are all these fabrics synthetic . Man yeah. Lemonis typically price per yard . Man 10. Lemonis 10 . Man yeah. Anna plus theyre too expensive. Susana the conversation always is, we cant afford it. Never . Really . Anna some stuff is too expensive. Susana all the time, fabric costs are too expensive. Anna yes, because you look at fabrics like 20 a yard. Susana no, its not 20 a yard. Anna yes. Susana she dismisses every single thing that i ever tried. I get so excited, and then i go, cant use. Cant use. Cant use. Cant use. And now i have to redesign and really pull out some magic out of nothing. Thats not where it started. Thats not where the joy starts. Ive lost my feel to do beautiful things, you know what im saying . Lemonis i cant fault anna for always trying to improve margins and drive down costs. Thats her job. But its also her job to help susana bring her visions to life. And im not sure shes always on the same page. I can see susanas point that you are aggressive. Anna you are also very aggressive, by the way. Lemonis im aggressive cause i want to sell some [bleep] i want to make money. Anna yes, me too. Lemonis and i want the clothes to be right with the right fabrics. And so were gonna build an infrastructure so theres less crisis. This company is never gonna succeed if susana feels stymied, like she cant afford the fabrics that she really, really wants. Well, never again is that gonna happen. Can we get these . Woman sure, of course. Lemonis and you want these as well . Susana yeah. Lemonis the money im investing in this business is gonna go into resources, like fabric. Were gonna buy in bulk and lower our costs and ultimately save money and give her the products that she wants to be creative. Design what you love without compromising too much quality. Susana mmhmm. Lemonis i want her to love everything. Anna its not yes. Susana i want to love everything. Lemonis so do you. Anna yes. Lemonis can we go look at some other stuff . Oh, i need to find some zippers. Today im gonna hold the liquidation soon, and i have two goals clear all this dead inventory so that we can get some cash back, but also make room in the warehouse for the core collection that were establishing. Lets just get this stuff out. Theres some dresses. But more importantly, i want susana to stay front and center with new customers getting to know her brand. Okay. Susana okay. I really dont want to go in. Lemonis whys that . Susana . To the store. Because when im designing, im trying to be in the creative bubble right now. Lemonis are you designing right now at 4 00 . Susana no. Lemonis anna, can i spend a minute with susana . Anna all right. Lemonis i know its a big deal for you, but this is the last thing you got to get over. Here we go. Say hi to this woman. Hi, there, maam. Susana hi. Woman hi. Susana how are you . Lemonis this is susana monaco, the designer. Shes having her sample sell. Honestly, if you take two minutes and let her just show you the product. How are you, maam . Were having a sample sale, 90 off. Woman whats the name of the company . Susana susana monaco is the company name. Woman is that you . Susana yes, thats me. Theres a lot of cute stuff here. We use a lot of different styles. Woman okay, ill look around. Susana okay. I mean, this is hard. Lemonis whats the real issue here . Susana this is very difficult. Lemonis why . Susana to deal with. You know . You know, with all these years working under this kind of stress. I mean, i i dont know if you believe it or not, but its really stressful to. Lemonis if your business is in trouble and you need my help, log on to. Why give it headlightsver on a like jewels . Filled with them . A body that feels sculpted . Why give it an interior where even the dash is cut and sewn by hand . Its simple you can build a car. Or you can build a cadillac. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Yet up 90 fall short in getting key nutrients from food alone. Lets do more. Add one a day mens complete with key nutrients we may need. Plus hearthealth support with b vitamins. One a day mens in gummies and tablets. Safety isnt a list of boxes to check. Its taking the best technologies out there and adapting them to work for you. The ultrasound that can see inside patients, can also detect early signs of corrosion at our refineries. Hightech military cameras that see through walls, can inspect our pipelines to prevent leaks. Remotecontrolled aircraft, can help us identify potential problems and stop them in their tracks. At bp, safety is never being satisfied. And always working to be better. Susana this is very difficult to deal with. You know, with all these years working under this kind of stress, i mean, i. I dont know if you believe it or not, but its really stressful to. Lemonis come on. Come on. Its okay. Susana im not used to anybody being there. Lemonis but im here. Susana i know. I know. Lemonis thats why you called me. And im not gonna let anything bad happen to you. Okay . Susana yeah. Lemonis this is the last hump in the road. So id like you to go inside, id like you to work with me, lets get some people in. Youre giving a lot of women the opportunity to buy your product that maybe normally they couldnt afford to. Susana yeah. Yeah. Lemonis think about it that way. Susana yeah. Yeah. Lemonis i dont think susana is used to really being out front and having this be about her. Historically, its been about her family or anna or everybody else. Well, this is the day that susanas gonna be out front, and shes gonna be proud of what shes done. How are you folks . Woman good, how are you . Susana hi. Lemonis welcome, this is susana monacos sample sale. Can she show you some of her stuff inside really quickly . Woman yes. Absolutely. Lemonis how are you, maam . Were having a sample sale. 90 off. Susana like 50 or 60 designs, tops, and dresses generally. Woman very cool. Lemonis everythings 20 inside and out. Susana this is one of my other favorite dresses. Its a fall dress. This is all our design. Everything is us. Im the designer. Woman oh, nice to meet you. Susana youre picking very nice stuff. Im glad you stopped by. Thank you. Thank you. Lemonis where you guys at, about 38,000 for the day . Man yeah, 38,000. Susana it was a really good turnout. Huge. Lemonis im going to have them run this for a couple more days and my guess is that we clear probably 100,000 out of here. Susana yeah. I got to see how everyone was trying on all the different products and seeing what people were attracted to and hearing some old stories about people who actually had been customers for many, many years, which was a great thing. Im more relaxed now. Im not crying now. It was great. Lemonis susana, good job. Morning. Anna hey, how are you . Lemonis good, how are you . First thing i wanted to knock out was the core products. Did you finalize the final core pieces . Susana yes. Lemonis these are all the best bodies. We have them in stock at all times. Susana mmhmm. Lemonis so that if you get a rushin order, it means its actually delivered, okay . Anna okay. Lemonis i feel really good about what was done with the core collection. Id like to actually do a fashion show. Im gonna invite journalists. Im gonna invite magazines. Im gonna blow this thing up. Like any other fashion company, in addition to our core products, were gonna have new products that come out every season. So what i really want susana to do now is focus on next springs collection. Ive bought new fabric, and i want to have a fashion show to create some buzz. This is gonna be about putting you in the forefront. Anna i dont think that she needs to be subjected to that, because there is not enough time. And your problem is that you never finish anything. Lemonis this is the moment where the owner of the business, person with the name on the wall, has to be crystal clear. Susana step off. Anna okay, but i do. My opinion is that she does not express herself clearly. Susana this i cant deal with actually. That, you know, i dont im not clearly representing what i want to say. I dont like it. I dont like it. Whether you think i, you know, can clearly represent myself or express what im saying or not, i dont care. This is bull[bleep] anna thats not bull[bleep] susana its bull[bleep] anna no, its not. Lemonis i was annoyed that anna continues to try to bully susana around and tell her what to do. Theres nothing new about that. But what was new is that susana was standing up for herself. Now, thats progress. I think you have to try to be more helpful in pushing her to the forefront. Anna some things i disagree with you. I think that like i said to you lemonis some things you disagree with or most things . Its still susanas business. Thats still the name of the company. Anna i talk over people, but its not on purpose. Im not trying to be disrespectful. You know what i mean, sometimes its just like lemonis tell her that. Anna yes, and she knows that sometimes i have an idea and i just have to say something. Susana no, but it is disrespectful. This is something that you do all the time. Anna im sorry its disrespectful to you, but i did not mean to be disrespectful. Maybe i can be more mindful about it and change this, you know. Lemonis okay, well, should be a great show. So you need to get your head around being at the front. With the core collection finalized, were heading into production to build the inventory so that retailers can get those items all year long. But more importantly, the fashion show is quickly approaching. And what i want susana to do is to focus on that and getting the spring line done. Susana. Susana hey, marcus. Hows it going . Lemonis good. I wanted to check in on the drawings for the new collection. Have you historically had products this long . Susana um, not generally. Lemonis but what prompted you to do that . Susana because the fabric has a really great drape. Its got a really great hand. Lemonis can you print some out, because id like to see some of the colors. Susana spends a lot of time and money printing out different designs, and so i went out and i bought her a new epson printer. It doesnt have a cartridge. And its mobile. You can move it all around the office. Not only is the color vibrant, but it also comes with an ecotank and up to two years worth of ink, so im not wasting a ton of money. You know how you buy a printer and youre like, i spend more on cartridges than i did the printer. Susana the colors came out really great, and its fast, too. Lemonis i love it. Susana yeah. Lemonis i thought the three of us could just spend a minute chatting and find out how things have been going. Susana i want to be partners, but not in the terms of her telling me what to do in my own business. Anna im not bossing anybody around, because its her company. If its her company and it means that she doesnt need to produce line on time, that it bothers me, you understand . If she doesnt like my opinion, okay, fine, but susana i dont like when you have this impression, well, she. This kind of sort of push me on the side kind of thing. I dont like it. I have to be able to say my opinion and say what i feel. Im the owner of the company. My names on the door. Lemonis i just feel like this is gonna continue for years. How does this resolve itself . Susana i dont know. Lemonis do you want anna to be part of the company Going Forward . Susana if theres a change. If theres a change, yes. If theres not a change, then we can, you know, part ways. Anna she cannot face things by herself. Susana can you please shut up . I just want to clean this up, do you understand . Anna instead of waiting for you to say all those things she told me she wouldnt, you know what i mean . She would have had this conversation susana cause you know why . Im done. Im done with this relationship, how we work. Im done with it. Lemonis this is a big night. Susana yeah. Lemonis have you seen how many people are up there . Susana no. Lemonis allures there. Vanity fairs there. Its packed. Nobody does underwater stunts, sylvia. Except me, of course. This is my stop. Adios if youre a stuntman, you cheat death. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. Numero uno [customer] have you ever walkedp into the paint store feeling like you should really know more than you know . Satin versus semigloss, and. I dont know [team member] yes. I know the feeling. [customer] thats how i feel right now about all the Financing Options for this project im doing. I feel like i should know more than i know. [team member] dont sweat it. We have this new toolmy credit options guide that gives you a customized comparison like this, which helps you discover which credit options might be right for you. [customer] oh, this is better. They should make one for paint. [team member] want to get started . [customer] sure. Pull up a chair. Gather round. So many ways to invite people to come together. Or you could just put out the sabra and let the simple, fresh ingredients do the talking. Sabra. Welcome to the unofficial meal. Anna she cannot face things by herself. She could not talk susana what do you mean face things by yourself . You know why . Im done. Im done with this relationship, how we work. Im done with it. Lemonis do you guys realize that the two of you really argue about nothing . Anna sometimes, you know, i can be aggressive, and i do get upset. Susana i want it to work. Ive always wanted it to work, but there has to be mutual respect. Thats what needs to happen. Lemonis we have a big presentation. Im excited about it. Ive spent a lot of money. Do you think you guys can Work Together . Susana i think we can Work Together. Lemonis do you think you can Work Together . Anna yep. Lemonis its a busy time at susana monaco. Ive invested 100,000 into creating the new core line and building up the inventory. And in just a few days, were gonna be unveiling our new spring line at the fashion show. Susana oh, thats cute. Anna oh, thats cute. Very cute. What do you think . Lemonis it needs to be clean, but i actually like the fact that its slightly frayed. I like the fact, susana, that you put sheer all the way around. It really makes it dressy. The outside fabric feels just slightly too short. Were making improvements overall. But most importantly, the line is looking very promising. Fabric feels much better. And i like the laser cut. Susana the laser cuts really good. Anna and that is very pretty. Lemonis i like what you did down here. Remember how uneven it was at the bottom . Susana yes. Yeah. I mean, it fits really good. Lemonis just a couple more details to iron out, and we should be good to go. Nice. Really nice. I think the collection looks great. Today were gonna be having the fashion show. I invited bloggers and editors and buyers to create a buzz. Fashion show is a different form of marketing that not only puts susana monacos new line on display, but hopefully it puts susana on display, as well. Susana just memorize where you are space wise. Oh. Hi, marcus. Lemonis hi. Do your thing. Im not even here. Susana can we try it one more time . When you guys start, everybody, your starting point is when the girl in front of you hits that corner. Lets try it again. Lemonis obviously i want the clothes to get a huge reception. And i spent a lot of money putting on this show. But whats more important to me is that i want to see susana getting out in front of people, being proud of her work and who she is. Susana everybody has to stand. This is standing. This is power position. Shoulders back. You own this. Lemonis this is a perfect night for you to get a fresh start. Tonights about susana. Anna yes, absolutely. Lemonis and i want you to really support her. Truce . Anna thats a hard mission. I was there front and Center Holding her hand for years. Lemonis but, anna, dont let your attitude get in the way of your talent. Anna no, no, no. Lemonis do we have a deal . Anna yes. Lemonis lets get back in there and support her, okay . Susana all right, ladies, let me take a look, please. You all look incredibly beautiful. Mario if anybody need help, i can do this. Lemonis ladies look amazing. This is a big night. Susana yeah. Lemonis this is like the rebirth. Susana its crazy. Lemonis whats crazy about it . Susana just unbelievable, actually. Lemonis are you nervous . Susana yes. Lemonis do you see how many people are up there . Susana no. Lemonis its packed. Allures there. Vanity fairs there. Susana okay. Of being there for my sons winning shot. That was it for me. Thats why im quitting with nicorette. Only nicorette mini has a patented fast dissolving formula. It starts to relieve sudden cravings fast. Every great why needs a great how. Every great why go to Great Lengths frto find relief. Ain finally theres drugfree aleve direct therapy®. A tens device with high intensity power that uses technology once only available in doctors offices for deep penetrating relief at the source. Aleve direct therapy. [ male announcer ] tora bora fallujah argonne khe sanh midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. But more important are the faces we will always remember. We created the ripple the doughnut in a doughnut in a doughnut. Right away, it was a success. I mean, it really took off. What people dont know is that it all started with points from my chase ink card. I bought the ingredients, utensils, even custom donut cutters. Wow all with 80,000 points. What will you create with your points . Learn more about the ink business preferred card. Lemonis its packed. Allures there. Vanity fairs there. Theres, um. Susana okay. Maybe i shouldnt know that. Lemonis this is where you were always meant to be. Susana yay. Very exciting. Lets have a show. Come on whoo lemonis folks, its a big night. I have the pleasure of being a new partner in a business called susana monaco. Tonight, were gonna be showing you a brandnew collection that susana has designed herself, and it is the Spring Summer collection for 2017. The new spring line is manufactured with high quality supplex, giving it a cohesive, unified look. If it sells as well as i think it will, then ill consider putting it in the core collection. But it all starts with the buzz we get created today. Dont shake. Its okay. This is what you worked for. Susana yeah. Lemonis and you know what . All of this is your talent. I invested in whats inside of you. Okay . [ cheers and applause ] susana id like to thank marcus for giving me this opportunity to revive this company. And i really appreciate it. Thank you so much. Thank you. And this is my dad. Lemonis i was really touched by the fact that mario came out to support susana. Hes really been encouraging through this whole process. It also seems like the family dynamic at the factory has really, really improved. You feel like your relationship with your brothers is getting a little better . Susana they were happy. I think its great that we went through that whole process, and i think theyre getting past it. Lemonis and with the manufacturing process for this line going off without a hitch, well, it shows me that Real Progress is being made. Susana shes a confident, chic, a strong woman who feels good about herself. Lemonis so youll be able to buy it at bloomingdales, nordstrom, saks, rue la la, susanamonaco. Com, shopbop. Throughout my journey with susana, i had one real goal in mind, and that was seeing susana comfortable with putting herself at the forefront. People like to buy from people. Now that shes not hiding anymore, her sales are starting to follow that same path of growth. I think the skys the limit. Anna congrats. Susana thank you so much. Anna you know we do love each other. Susana yes. Anna and we are really good friends. Susana yes. We have to move forward now. Anna yeah. Lemonis im very proud of you. Susana thank you so much, marcus. Lemonis you know, one thing that i think is important for you to remember is that you cant lose your backbone anymore. Susana no. I think this whole experience has been an incredible turning point, a change. Its not gonna go back. Lemonis good luck. Susana thank you, marcus. Lemonis ill see you tomorrow. Susana okay. Announcer the following is a paid presentation for lifelock, the numberone most recognized brand in identifytheft protection. 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