Marcus Lemonis’ joint venture with Lisa Shaller-Goldberg, president and creative director of Minnie Rose, to launch a brand called Threads of Privilege has ended. Instead, Shaller-Goldberg will produce and market the collection independently.
As reported in February, the Marcus Lemonis Fashion Group said it would be financing the Threads of Privilege collection, designed by Shaller-Goldberg. The fall collection was introduced at Coterie in February, across from the Minnie Rose booth.
While Lemonis said he paid $108,000 toward the venture, which included rental of the Coterie booth, displays, electrical and flooring expenses and an ad, Shaller-Goldberg said she incurred all the costs of samples, fittings, design, graphic designer, models and a photo shoot to get the collection ready for the trade show. After Coterie, Lemonis walked away from the venture. Shaller-Goldberg said they had signed a letter of intent and had the paperwork drawn up; they were going to finalize the deal after Coterie.
“The line is continuing and Lisa is going to be running that business as a subset to Minnie Rose. I’m not going to finance it,” Lemonis said. “Stylistically, we just have a difference of opinion. I don’t mean style, in terms of clothes. I mean style in terms of operating. Lisa is unbelievably talented, but we see things differently. Rather than do things that will detract from her experience and her success, it was easier for me to not be part of something I didn’t necessarily feel comfortable with.”
He said Stephanie Menkin, who is the president of Lemonis’ fashion business, had to feel comfortable as well. Lemonis claims that he paid for samples, the booth and the marketing. “Everything you saw beginning at Coterie, I paid for, over $100,000,” Lemonis said. “In the end, I said to her, ‘I’m going to transfer you the trademark, I’m going to transfer you the web site, I’m going to transfer you everything, and I’m going to take my loss. I’m not going to ask you to pay me back for anything, I’m not going to ask you to do anything,” Lemonis said.
Although both Merkin and Shaller-Goldberg agreed that Lemonis paid $108,000 to cover the expenses of the Coterie booth, displays, carpet, electrical and an ad, Shaller-Goldberg pointed out there were many more additional expenses. “I produced the sample line for the show. He paid none of it. I have a lot of orders so I’m going into production,” she said.
Shaller-Goldberg claimed the line has been well received by retailers. She said Threads of Privilege reaches a different customer than Minnie Rose, which is more sophisticated. Threads of Privilege is geared to a younger, hipper and edgier consumer.
Threads of Privilege is an elevated streetwear collection, which features cashmere essentials including zip hoodies, pullovers and track suits. There are oversize streetwear-inspired staples and contemporary sweaters with graphic elements. The line wholesales between $145 and $250 and has been sold to stores such as West Side, Blue & Cream, Boyd’s, Ron Robinson and Kitross.
Prior to founding Minnie Rose, Shaller-Goldberg was involved with brands such as Juicy Couture, Ugg Australia, True Religion and Hard Candy, which she handled at her sales, marketing and branding agency.
Lemonis, an entrepreneur, investor, TV personality and chairman and chief executive officer of Marcus Lemonis LLC, has a show called “The Profit,” where he lends his expertise to struggling small businesses around the country. He owns a specialty chain called Marcus, which sells women’s contemporary fashion, footwear, accessories, books and home decor, and has invested in brands selling jeans, ready-to-wear, cashmere, scarves, T-shirts, footwear and watches.