Patrick DiLascia, who was born and raised in New York, wanted more space to realize his goal of opening his own clothes shop. He made the decision to go to the west coast, loaded up a truck headed for Los Angeles (where there is lots of room), and started again. DiLascia established a website, acquired a storefront, and established relationships with major retailers such as Nordstrom’s and Barney’s New York. Patrick’s company grew so fast that he brought his brother and sister with him to L.A. to assist manage it.
Patrick’s company began to suffer when DiLascia’s biggest store went out of business. To make things worse, the three siblings had a strained relationship. When Patrick reached out to Marcus Lemonis and The Profit for assistance, sales had fallen and the company was in deeper debt.
Marcus has dabbled in the fashion world in recent years and admired Patrick’s creations. He’d seen the DiLascia emblem on the internet and in stores like Barney’s and Nordstrom’s. He’d have to see if he could somehow harness Patrick’s apparent inventiveness – he recognized the opportunity and was ready to help.
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The Profit, according to DiLascia
Episode 2 of Season 4 of The Profit
Patrick grew raised in a bakery in upstate New York, which his father owned and operated. Patrick went to Los Angeles to follow his ambition when his mother died.
Marcus discovered that this was not Patrick’s first time in the fashion industry. He began his career as a sales associate at American Eagle before moving to Italy to work for Armani, where he served as a buyer for all 600 Burlington Coat Factory stores. He informed Marcus that he had signed a deal with TMZ for a license and exclusive branding. Marcus was blown away. Patrick’s résumé, he believed, demonstrated that he was a skilled salesperson and that major corporations had entrusted him with their brand.
Patrick’s men’s and children’s product lines generated the majority of his income, with women’s clothing accounting for just 20% of the total. Marcus thought that DiLascia’s women’s collection was lacking in variety. Hoodies, fitted shirts, and tank tops, which are usually major sellers for women, were not available.
DiLascia’s Financial Situation
Sales were in free fall. In only two years, DiLascia’s sales dropped from over $1 million to less than $600,000, a staggering loss of more than half of his entire income. The closure of Kitson, a major store, cost them a third of their income. Marcus saw this as a sign of the company’s vulnerability, and he encouraged Patrick to seek wholesale contracts that would bring in more income and stability.
Patrick’s brother, Dan, informed Marcus that the L.A. shop only brought in $60,000 a year, just enough to cover the rent. Patrick utilized the Los Angeles site as both an office and a residence. As sales declined, Patrick’s brothers were no longer compensated, and most months he was not paid at all.
Patrick had spent the whole $100,000 given to him by his mother to establish the shop. Dan lent him an extra $20,000 and assisted him in opening his first store. Patrick and Dan’s sister, Kelly, were trying to restore some order to the company, but Patrick seemed to be resentful of it. Kelly wanted to alter things up when the shop started losing money, but Patrick refused, believing he was the one who had the purchasing expertise.
Marcus discovered DiLascia’s negative equity of $207,000 when visiting the warehouse. Marcus offered Patrick $200,000 in return for half of the company’s stock, and, as usual, he would assume complete control of the operations. He would also give each of the siblings a 10% stake in the company.
Marcus intended to expand the women’s product range, concentrate on product development, and pay off vendor obligations. Marcus sought to improve the brand and create an efficient inventory production process since the store’s structure was inefficient.
Marcus believed that expanding the women’s line to include hoodies and sweatpants would help boost sales and provide value to each purchase. Patrick collaborated with Marcus on design concepts, although he was resistant to input from a focus group.
Marcus showed Patrick his own apparel company, Two Arrows, which he has invested in Los Angeles. They went on a tour of the creation process, and Marcus gave Patrick a room in the facility where he could work and create without restriction. Marcus strongly suggested that the DiLascia site be sold. Patrick fought back until Marcus gave him an ultimatum, forcing Patrick to shut the shop.
Patrick and Marcus then went to Bloomingdale’s, where Patrick’s sales team was so pleased that they offered DiLascia a trunk show.
Marcus observed that a package of goods had not arrived on the day of the event, but Patrick did nothing to address the issue. Patrick, on the other hand, made the modifications Bloomingdale’s requested without incident.
Marcus saw that Patrick was young and still developing into the type of businessman he could be and that he was acting in his company’s best interests. Marcus was pleased with the investment as a whole. Is it still going on?
After the Profit, DiLascia
Take a peek at Patrick DiLascia’s Twitter profile if you want to feel sad. Things don’t seem to be going well for DiLascia, based on the furious and abandoned tone of his latest postings.
Patrick joined Marcus’ ML Fashion Group in New York City after The Profit premiered, but the relationship did not last long. Marcus tweeted a year later that Patrick was no longer engaged in DiLascia’s operations, but he kept the wholesale part of the company.
Marcus stated in an episode update that he not only lost his initial $200,000 investment, but he also lost $36,000 in legal fees due to a dispute with Patrick. People who had dealt with Patrick previously had cautioned him about his lack of honesty, but he thought Patrick was being honest with him about his desire to expand the company.
Marcus eventually found that Patrick had been dishonest with him and had not been open about his money or the problems he was having.
In 2017, Patrick launched a higher-end product range called “Patrick,” as well as a new brick-and-mortar store in downtown Los Angeles. The website has now been defunct, and the shop has been closed for the last two years.
Marcus still owns DiLascia, which links to his t-shirt business, jetsettees.com. He holds himself responsible for the deal’s failure and has learned a vital lesson for the future.
The material in this article is given only for educational purposes; Royal Pitch is not connected with DiLascia, The Profit, or any of its subsidiaries.
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