Ashley we might want to spell barbeque correctly, though. Lemonis . And morale withers away. Jackie if i had another job opportunity, i would take it. Amy its just mindblowing sometimes. Lemonis if i cant mend their fraying relationship. Both of you, get your [bleep] together and figure out how to coexist and have Mutual Respect. Their beloved brand will go bust. That store is closing, unfortunately, no matter what. My name is marcus lemonis, and i risk my own money to save struggling businesses. Were not gonna wake up every morning wondering if we have a job. Were gonna wake up every morning wondering how many jobs we have to do. Its not always pretty. Everythings gonna change. Everything. But i do it to save jobs, and i do it to make money. This. Lets go to work. Is the profit. [ applause ] mike and John Anderson founded tankfarm back in 2003, and today, they have two stores one in Huntington Beach and the other in their hometown of seal beach, which is where im heading right now. I have a number of investments in the fashion space, and if this one goes well, it could fit in very nicely. Woman hi, hows it going . Lemonis hey, how are you . Woman good. Thank you. John whats up, man . Lemonis how you doing . John [ laughs ] im john. Lemonis john, how are you . John nice to meet you, man. Lemonis nice to meet you. Mike mike, awesome. Lemonis mike, how are you . Can you guys give me a tour of the store . Im trying to understand the concept. John absolutely. So, tankfarm is supplies for gentlemen of sport and leisure. Our strong demographic is male 25 to 45. Thats our audience. This is our brand. Fits great. It looks great. We buy the blank. Mike designs the graphic. Its really high quality. This is seal beach. This is the seal beach pier. Lemonis all 29 . All your tshirts . John they are. Lemonis cost . John about 6 bucks. Lemonis killer margins. Good quality. John great quality. Lemonis and the product is well done. Mike thank you. Lemonis you guys understand color. You understand quality of fabric. You understand design. Are these all your house brand, or is there a combination . John we have about 65 brands. A guy comes in, and he can get everything from his socks, boots, to sunglasses. Lemonis exceptionally high margins or average margins . John i would say the nontankfarm, our average is 40 margin. Lemonis the margin expectations that should be in that store should be north of 55 , maybe even north of 60 . These thirdparty brands should actually add fuel to the retail business, not drag it down. Whats this store do in revenue . This location . John about 540ish. Lemonis 540 out of this store. John and about 560 out of the other store. Lemonis Huntington Beach store make any money . John 15,000 last year. Lemonis this store. John i mean, like, what, 5 grand . Lemonis okay. Mike but also we have a private label Design Business that we do on the side. Lemonis oh, really . John the prime label is a different company. Lemonis and thats designing and producing for other people. John the Anderson Brothers design and supply lemonis how much revenue . John last year, 1. 7 million. Lemonis wow. What kind of profitability does anderson have . Mike 2017, after 1. 7 million, about 200,000, after we get paid. The stores dont pay us. Lemonis wow. So, wow. As i dig into john and mikes business a little bit more, im learning that theres actually two separate, distinct companies. Tankfarm, which has the two Retail Stores that are struggling, and Anderson Brothers, which is basically an Apparel Company that helps other companies manufacture goods and products with their name on it. A bit of a private label Apparel Company. Its clear to me that these guys really understand how to design and manufacture and distribute products. But running two stores . Not so much. Who does the planning . John i do that part. Lemonis oh, so youre the buyer . John im the buyer. Mike but i do the handson Graphic Design. John i buy the best of the best. Lemonis are you 50 50 partners . John yes. Mike yeah. Lemonis how did you start the business . Mike were thirdgeneration printers. John our grandfather, he started the print shop in the 70s, and that was paper goods. And then in the 80s, our dad started doing tshirts. Mike he still prints our stuff. John yeah. Lemonis oh, thats cool. John so, yeah, inks in the blood. Mike where we grew up, orange county, theres a threemile area of these big oil tanks. Lemonis okay. Mike and that was called the tankfarm. John we kind of claimed it since were from there. Hey, lets start a record label and call it tankfarm. We were both in bands. Mike we had to make merch for the shows. John we were really good at merch, and all the tshirts sold, but the music didnt. Mike wifes, like, you should put up your own store. John everyone told us, make your own. Lemonis youre married. Mike married, yeah. I have three boys, little boys, and he has two girls. And my wife owns the womens boutique across the street. Lemonis oh, very cool. Mike that was fun, it was a blast. Singer, and younger brother played guitar, wrote a whole bunch of stuff. Lemonis how many brothers . John theres three. Lemonis so theres one more. Mike he passed away. John yeah. Lemonis oh, he did . Mike yeah, so about almost two years ago. John almost two years, cancer. Lemonis oh, man, im sorry. Both thats our brother, ricky. John hes the talented one. Mike yeah, he was the singer songwriter, super talented. We have his record here. John theres a pain that goes through cancer. Hard thing to talk about. Mike when things happened, and it kind of went to, like, stage four and all that, were like, this is not making sense. This does not add up. This doesnt happen to us. John yeah. Mike the andersons. You know, vacation every year in the mountains for snowing, up north for water skiing. John we dont vacation anymore together. We dont do a lot of things because its just too lemonis as a family. John yeah, because its too painful. Mike our family just, like, broke apart. This back area is a little too cramped. Lemonis because youre trying to run two businesses out of em. Mike exactly. John so this is the office. Lemonis hi, there. Val hi. Lemonis im marcus. Val val. Nice to meet you. Lemonis val, nice to meet you. What do you do . Val im the office manager, and i take care of finances for tankfarm. I do lemonis the stores . Val the stores. I do, like, the deposits at the banks. I do payroll. Lemonis and are you guys all paid through anderson . Val correct. Lemonis okay. John this is amy. Amy im the production manager for anderson and tankfarm. Lemonis okay. Amy and then i do finances for anderson, as well, too. Lemonis are you on andersons payroll, or are you amy yes. John we know. Mike andersons paying the bills. Lemonis but anderson does not produce product for tankfarm. Amy they cant pay on time. John tankfarm cant pay on time. Lemonis is that the truth . Amy yeah. Lemonis so, i never like the brand on the door to be the brand on the product inside that store. The idea of creating brands and doing what you do inside of anderson is great, but what i would prefer to see is anderson on the door, and then inside of the store, other brands that you may own in your back pocket. When the brand on the door and the name on the product is the same, the customer is gonna see that as almost a house brand, like generic cereal. And the high margins that you were actually going for, they may not come to fruition. Whats it like working for these two guys . Val the way that they treat us, theyre fair. Theyre nice. I will say that they are kind of spread thin. Amy usually, its pretty stressful, and you know, john is going, give me the new art, new customer, new business, sales. And hes just very pressured and wanting to make sure were doing our jobs. Sometimes i feel like they just need to focus on one thing. Lemonis are they late with their deadlines . Amy sometimes. Lemonis and whos late . Mike me . John and im like, get this done so we can shift the goods. Lemonis bye, ladies, thank you. Amy bye. Thank you. Lemonis thank you for the honesty. [ laughter ] we should just you guys should just change the street to anderson way. Mike tells me that his wifes in the apparel business, and so i wanted to get a flavor for how her store would look. I was just curious. Mike my better half, candi. Candi hi. Lemonis how are you . Candi im good. Lemonis nice to meet you. Candi nice to meet you, too. Lemonis what a beautiful store. Candi thank you. Lemonis maybe you guys should come over there and teach us something. Candi hey, i will. [ laughs ] lemonis what will this store do in numbers on an annual basis . Candi this one did 1. 3 million. Lemonis shes basically doing more than the two stores combined in one store. What do you think their store looks like . Candi i always tell em it looks like a museum. I tell them, let me merchandise, but you know, so. John i dont really agree. Woman i think its a little in there, a little maybe too cool. John i dont agree with the too cool thing. I dont agree with it at all. Candi i dont want to step on any toes. Lemonis i was surprised how quickly john got, like, really defensive. Whyd you get all whacked out . John its hard for anybody to go in a place, like, this is amazing. You guys are terrible. Thats not easy. Lemonis nobody said that. John it felt that way. Lemonis whose motorcycle . John mine. Well, its ours. Mike mine is actually right there with the side car. Lemonis im riding in that thing. John oh, 100 , yeah. [ engine revs ] lemonis yeah, buddy. What i really want to do now is go to the dads print shop. Whoo which is ultimately where it all started. John [ laughs ] lemonis whoo, that was fun. John hey, dad. Lemonis mr. Anderson. Nice to meet you, sir. Rick nice to meet you. Lemonis oh, wow. Its a big shop. Rick this is the Screen Printing side. Lemonis okay. How much could you crank out of here . Rick the other day, we did 2,600 shirts. Lemonis in one day . I honestly was surprised with how big the Screen Printing shop was. Mike angle, good pressure all the way in. Lemonis what i like about what i see here is its connected to the family, so i know theres good pricing. Oh. Rick slick. Lemonis come on with the gold. And this business could really grow. There is a ton of capacity. Rick mike, hes a great graphic artist. John is the sales guy. He gets the sales. Hes very determined. I cant think of any better. Mike thanks, dad. John thank you, pop. Rick weve been through a lot with my son. [ sniffles ] lemonis yeah. Mike we could show you a video. A video he did for his daughter. Lemonis i would love to watch that video. Did he write this song . Mike he wrote it and sang it for his daughter. Ricky dont ever stop loving dont let anyone take your crown ill always look out for you rick [ sniffles ] lemonis wow. His voice is amazing. Mike he loved to have a good time. We dont want to just always be sad about it. We want to remember john celebrate his life. Mike celebrate his life. Lemonis you can tell by the way they feel about their father and their brother that they have character. And any time you meet people that are rich in family tradition, those are the underpinnings of Good Business partners. Guys . John hello, again. Mike hey, marcus. Lemonis how does this store do . Mike were not hitting the numbers that we thought we would. Lemonis what did you forecast for this store . John a million a year. Were doing lemonis half of that. John half of that. Lemonis how much is the rent here . John about 10,000 a month. Where its about 6,500 in seal beach. Lemonis whens your lease run out . Mike next month. John next month. Lemonis did you bring your financials . John we did. Lemonis lets sit down and go over em. John okay. So this is tankfarm seal beach. Lemonis seal beach, 530,000, and the store made 16,000. 56 margins. 56 for a store is slightly less than average. You got huntington, 539,000 in business. This store shows that it made 13 grand. Very little return. Anderson brothers. 1,742,000 of revenue. 40 margins. Total expenses are 544,000. Business made 155,000 bucks. Between all the entities, 2. 7 million in total revenue, 184,000 of profit, 530,000 of real, tangible assets, 511,000 of liabilities between payables and loans. So youre not upside down. So whyd you call . John heres what im gonna say. Mike hold on. John wait, no, hold mike wait, no. John let me say it. Stop. Mike geez louise. John i gotta say something. Just let me say it. Okay. Somethings off. Tankfarm should be a bigger brand. Lemonis i think where this business has potential is largely in product development. I think whatever i offer, its gotta just be everything in a pot. I dont like money moving like this. It scares me. Okay, so heres what i want to do. John okay. Lemonis my offer is 2 million. A Million Dollars in equity, and a Million Dollars in a line of credit. The Million Dollars of equity, i want 50 of the business for it. 50. 001. I want to have more than a seat at the table. I want to have a seat at the table, and i want to have a rubber stamp. Mike let me ask. Where do you see tankfarm in this . Lemonis i dont know. I like the idea of tankfarm, but i do not like the idea of the name on the building is the name on the product. John this is something ive always been thinking about. So we said, hey, were gonna do something called Anderson Brothers. Its gonna be for our family. Its gonna be for my little girls. Its gonna be for our nephews, rickys kids. Its gonna be for his sons. Were gonna build this thing, and theyre gonna work for us. Thats our dream. Thats my dream. And i want to give them equity in this thing. Thats why im its harder for me to be, like, sure, yeah. Mike theres not a lot there. John im struggling with that because theres not a lot left over. Thats where im struggling. Could we be 33, 33, 33 . Then we could have something. Lemonis it could be. Whether its 33 or 50. 1, im gonna have full control. John got it. Lemonis so, if 33, 33, and 33 is more comfortable for you, then great. Ill back my number down to a million. 500,000 and 500,000 instead of a million and a million. Its a better deal for me financially than 2 million for 50. 01. John that is, i was just i think we should stick with the 2 million, and i think we should do it that way, and i think you and i should lemonis unhunh, that deals off the table. My first offers my best offer, all the time. John lets call it 1. 5 million. Lets go a little bit more. Lets get back to the first closer to the first deal. Come on. Lets go closer to the first deal that we should have done. Lemonis yeah. No. John [ laughs ] that sucks. Lemonis if your business is in trouble and you need my help, log on to. Johnbeautiful. Butt when i started cobra kai, the lack of control over my business made me a little intense. But now i practice a different philosophy. Quickbooks helps me get paid, manage cash flow, and run payroll. And now im back on top. With koala kai. Hey more mercy. Save over 30 hours a month with intuit quickbooks. The easy way to a happier business. Xfinity is your home for the return of live sports. Come on, lets go closer to the first deal that we should have done. Lemonis no. John [ laughs ] that sucks. Lemonis my final offer is a Million Dollars. 500,000 in equity. 500,000 in a line of credit for 33. 3 . 100 control. John [ laughs ] well, then, thats the deal. Lemonis do you guys need to take a walk for a minute . John yeah, yeah. Mike no, no, no, no. No, i dont step. Change it again, dude. Sit down. Lets freakin do this thing. John oh, man. Okay, you got a deal, marcus. Lemonis okay. What do you think your brother would say right now . John hed be hed be giving you a high five, and hed be saying, good job, guys. Mike [ voice breaking ] he [ clears throat ] hed be very, very stoked for us right now. Lemonis boom. John thank you. Lemonis okay, guys. John thank you, partner. Lemonis you got it. All right, guys. Whats happening, everybody . John yeah, whats up, marcus . Lemonis yes john so excited. Good to see you. Lemonis how you doing, buddy . Can we just get everybody together so they know what the hecks happening . John yeah, absolutely. Lemonis so lets talk about whats whats actually gonna happen. We made a deal for me to invest a Million Dollars. There isnt really anybody out there creating mens fun, cool, trendy things. And when there are, they do really well. We shouldnt be doing things that dont make us money and that are distractions. Are the two Retail Stores profitable . Andy no, sir. Lemonis what does that lack of profitability, what pressure does that put on the other business . Amy a lot. I mean, because if they need financial help, then anderson is the one that has to help them out. John i dont feel its that that much of a, you know, of a burden. Amy i have to, you know, scurry and figure out who am i maybe not gonna pay to support the Retail Stores. Mike our lease is up in Huntington Beach. Lemonis that store is closing, unfortunately, no matter what. [ cellphone ringing ] mike this is a client. John its a pissed client. Mike mariana . No problem. I wasnt sure if you got my email. Ive been doing this for 20 years, and im super frustrated with myself because i sent the printer a mixup on the art. Its just inverted. Mariana ugh. Mike it still looks cool, but i was, like, 440 shirts printed. We can no problem, you know, of going back, but. John hey, mariana, this is john. Mike wait, lets john well, look. So real quick, what i was hoping for is that you could take these shirts. Its hard to even see the difference. You could take these shirts at a small discount. Mike yeah, yeah, im yeah, theres two things. Were gonna fix it. Not a problem. Awesome. Thanks, mariana. Well talk to you soon. Lemonis what do you think im gonna ask you right now . John just reprint the shirts cause theyre wrong. Lemonis why are you involved in his situation . If he made the mistake, whatever it is, he was working on it. John i felt like he wasnt gonna give her an option of, like, hey, you want these at a discount price . Thats all. Mike but i told you, please let me handle it. Trust me, i will always do whats best for the business. I want to make Anderson Brothers as big as possible, tankfarm as big as possible, but i have to convince you, im allin. Lemonis as broken as their process is, theyre able to attract really good accounts. I mean, kona is a legitimate company. Hooking the customer is one thing. You have to now execute on it. And the attention to detail, thats gonna act