“The Profit” wraps up its season with Marcus Lemonis at work with New York fashion designer Susana Monaco. A turnaround is necessary for the business to survive, but there’s something or someone who is making things difficult at best. Update: recap posted below.
In the sneak peek video posted below, Marcus attempts to educate Ana, Monaco’s longtime employee, that she isn’t in charge. Wait, isn’t Marcus always in charge when he invests in a company? Of course he is, but if the CEO/President is any good, he’ll fight to get her the respect she deserves, which might just solve problems.
Monaco may be making bad business decisions, but it’s the tension between her and Ana that is key to the turnaround. Ana is frozen out of a stake in the company after Marcus presents his business plan and goes bonkers.
He utters one of his best lines of the season tonight, “The goal is to get out of the business of losing money.” Simple, yet oh so difficult to accomplish with the complete buy-in from top to bottom of a struggling business.
We’ve seen a couple of failures this season on “The Profit”, which translates into a company’s owner refusing to take advice or Marcus learning about deception that induced him into an investment. If you take a peak at Monaco’s current website, she touts fashions that were featured on tonight’s show. We’re guessing that all went as planned. You?
This was a tale of two women, one of whom was assertive and the other who took a back seat. By episode’s end, those positions were reversed, which as Marcus Lemonis said, is the way it should be.
Susana Monaco’s family was trying to grab two-thirds of her equity in the company, just because, and she had Anna, who was looking to be a 50/50 partner. Susana seemed frightened to upset Anna, because she had so much power and responsibility that the designer felt helpless without her. She strained against the take charge attitude, because her own voice was squelched. To keep Anna happy, she was the highest paid employee in the company, taking a higher salary that Susana.
Monaco was estranged from two brothers and it kept her and Anna out of the manufacturing plant that was her father’s own business. It meant that she never set foot in the place that churned out her clothing. Her unsold inventory was vast, and her margins were so poor that despite gross sales in the millions, the company lost money.
Lemonis did what we’ve seen him do in the past with clothing businesses, which is to slim down the number of collections and pick one overall signature look for branding purposes. He invested $600,000 for 51% of the business, paying off debt, liquidating inventory and purchasing new materials for Susana’s design juices to being flowing again.
He had to bridge the gap between Susana and her family, ultimately seeing that her father, Mario was amenable to moving forward with Marcus taking control without his sons getting a piece. The brothers wouldn’t meet with him, and he chose to move forward anyway.
The dynamic between Anna and Susana had to change and Lemonis performed an intervention-like set of moves that switched the power structure. Anna didn’t leave and Susana recaptured her ability to take charge and be the public face of her company.
A runway show to reintroduce the Monaco line to the press and buyers was a success and the collection born on “The Profit” is for sale on the designer’s website with a discount if you use a code at checkout. Here’s the link.
CNBC presents “The Profit” season finale at an earlier time, 9 p.m. ET/PT. Image/video credit: CNBC, used with permission