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The Profit: Faded Royalty Creates New Designs and Grows with $150,000 Deal from Marcus Lemonis

Jay Leonard
Jay Leonard
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Faded Royalty

This week, Marcus Lemonis travels to New York City to help Faded Royalty, a lifestyle brand struggling with organization and lack of focus. According to CNBC, the founder of the clothing company “is disorganized and lacks focus, leaving his clothing line without an identity.” Additionally, “his unpaid loans and understaffed store are damaging his personal relationships.” If Lemonis cannot assist in building up the business, which is already hanging on by a thread, it could be completely torn apart.

Visiting their store, Lemonis immediately points out that it’s “a cool spot,” which is in New York’s Lower East Side. He thinks the colors are interesting, but worries that everything is a bit disconnected. He likes owner and fashion designer Rocco Giordano’s designs, but can’t quite figure out the identity of the clothing. “I am genuinely impressed by the creativity in here,” Lemonis says—but there are still improvements to be made.

After going out on a photoshoot, Lemonis then meets Joe, a partner in the business who owns 25 percent and has funded much of the company. Lemonis also learns that Giordano’s girlfriend is supporting him financially, while thousands of dollars worth of inventory is sitting in Joe’s garage. Giordano says they could potentially close in a month.

Next, Lemonis reviews the financials and offers $150,000 for 50 percent, with 40 percent for Giordano and 10 percent with $15,000 paid back for Joe. He counters 25 percent each between he and Joe, which Lemonis doesn’t allow. Giordano ultimately accepts. Lemonis hopes to put the money into new collections, marketing and a website.

Lemonis then challenges Giordano to describe his vision and adds that he needs to “pick a lane.” He wants him to pick one item to build an entirely new collection around, which will take into consideration design and color palette. Lemonis takes a look at the $40,000 worth of inventory next, but he doubts that there’s actually as much product as Giordano thinks. He explains that the products will be brought to the store for a sidewalk sale.

They then visit a fabric store and begin designing new products. Looking at the vision statement, Lemonis points out that Giordano is still “scattered,” adding that he needs to better tell a story. The two words Giordano ultimately decides are his vision: retro and bold.

Lemonis visits the store again next and is surprised to find that the products from the garage are not being sold. Lemonis takes to the sidewalk himself to sell the clothing items, which Giordano disagrees with. He doesn’t like the “fashion” of a sidewalk sale, questioning the integrity aspect. He says he’d rather give them to charity, however, they end up moving products out very quickly once Giordano gets on board with the idea.

Giordano presents his new designs next and he included more shirts than necessary. Lemonis is disappointed that he didn’t follow the directions, but wants more change with 12 shirts and several hats and sweatshirts to develop an entire collection.

Two weeks later, they visit a storage space where Giordano can keep his inventory. He also introduces Giordano to new resource sources as well, including dye and prints. Back at the storage space, Lemonis is surprised to see so many products, including 5,000 hats. Lemonis again encourages Giordano to focus.

Lemonis meets Giordano and Joe again and is happy to see that the garage is empty. He then reviews Giordano’s new designs and says he likes the look and cohesiveness. Lemonis then tells Giordano to put together a customer profile to pitch his collection to potential buyers.

He and Giordano travel to Minnesota next to visit The House, where Giordano pitches his collection. He tells them that the target market is people 16-30 years old and touts the margins. They like the quality and “Made in America” label. Lemonis is shocked to see, however, that Giordano designed a robe, which he did not ask for and is described by the team as niche and “a little too fashion forward.” Lemonis is frustrated that he didn’t follow the assignment again. The buyers like the story and cohesiveness and say the clothing could definitely be sold there.

Ultimately, Lemonis is impressed with the brand and creativity and says he would give the presentation a nine out of 10. Giordano says he learned how to stay focused and is looking forward to the future (including a possible engagement).

See how social media reacted to Faded Royalty on “The Profit” below:

Social Media Reacts to Faded Royalty’s Appearance on “The Profit”

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

What are your thoughts on Faded Royalty and designer Rocco Giordano’s clothing? How did you feel about the company’s transformation? Sound off in the comments section below!

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  This article was written for Business 2 Community by Jay Leonard.
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Author: Jay Leonard

Jay is a UK-based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. Jay has a great deal of hands-on experience in analysing financial markets and performing technical analysis. Jay is currently focusing on the institutional adoption of cryptocurrency and what it means for the future of…

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