Brooklyn New York is the location of the next episode. Marcus now finds himself at Brooklyn to learn more about A. Stein Meat Products. Best friends Howard Mora and Alan Buxbaum inherited the business from their families. The owners watched an increase of sales from $4 million per year to $50 million per year in just one year. A. Stein Meat Products ships meat to stores and restaurants in New York City, as well as to locations around the country. The company has its fair share of issues, however. A. Stein Meat Products is losing money with a revenue of $50 million. In addition, receivables amount to a staggering $4 million. To pay employees, owners Mora and Buxbaum take loans from the bank numerous times, amounting to $3.5 million. To make matters worse, the company is forced to lower their margins as the meat industry is pretty competitive. Marcus offers owners $1 million for 50% of the business. To fix efficiency and cost issues, one-third of the floor space is eliminated and all sports contracts are terminated. In the episode, Marcus has a hard time understanding why the company lost $400,000 the previous year although sales are fantastic. It seems as if its 47 employees are in jeopardy of losing their jobs if Marcus cannot turn a profit. Marcus calls in accountant Jamie to review the transactions and various account balances. The lady informs him to leave A. Stein Meat Products behind. Jamie admits that their liabilities were six times larger than what Marcus was told by the company’s office manager named Donna. Marcus then confronts the owners, feels bad, then decides to help them. The next morning, Buxbaum calls Marcus and asks for $200,000 to cover payroll and to provide for working capital. They agree that Marcus will gain Brooklyn Burger for his investment.
Updates
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A legal battle soon followed Marcus’ $200,000 investment in A. Stein Meat Products. Owners More and Buxbaum refused to hand over Brooklyn Burger even after Marcus wrote them the check. Marcus had made a mistake; nothing was ever written down and signed. Sure, their handshakes are videotaped but New York contract law requires signed writing if the deal exceeds $5,000. Also, Donna decided to quit the business and sue because for the reasoning that the owners were giving false information to Marcus.
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