Culture Craze

Lisa Hayward, from Parksville, BC, asked for $300,000 for 25% of Culture Craze, a body jewellery retailer selling tongue, eyebrow, navel, nipple, and septum rings, most priced between $20 and $50, through 14 kiosk locations across Western Canada. Lisa Hayward bought the company 11 years ago for $750,000. Revenue was $3.2 million last year with a projected $3.84 million this year; the business lost a combined $700,000 over two bad years during an Alberta economic downturn, during which Lisa Hayward sold her house and personal jewellery and entered special loans (bankruptcy protection), securing a $100,000 inventory loan. She still carries a maxed-out $300,000 line of credit and $120,000 in credit card debt at 19% interest, with her final special-loans payment due that month; the company made $160,000 in profit this past year, and Lisa Hayward has renegotiated rent at some locations to 10-15% of sales instead of the usual 30-40%.

Michele Romanow offered $300,000 for a 10% royalty until repaid, then 2% ongoing, but Lisa Hayward found that too high for her recovery. Jim Treliving went out, citing past experience in the jewellery business. Vincenzo Guzzo went out despite being moved by the story. Manjit Minhas offered $300,000 for 30% equity; Michele Romanow then joined that offer at $300,000 for 40%, which Lisa Hayward compared to what she originally paid for the company, prompting a final agreed deal of $400,000 for 40% equity with Manjit Minhas and Michele Romanow, which Lisa Hayward accepted.

We haven’t confirmed whether Culture Craze is still operating.