A reader wrote in with some news about ToughBuilt.
Here’s their full email, with line breaks added:
Was wondering if you were going to post about Toughbuilt being completely revoked from all stock trading due to their non-compliance.
They’ve also laid off just about every employee working in Irvine and haven’t released a new product (at least from their roadmap) in a very long time.
Seems like a nail in the coffin for their ambitions and a conclusion of such a poorly run company.
I’m sure they’ll exist as a skeleton crew with a thing here or there but no big brand like they hoped. Their Glassdoor page lays out the internal issues pretty clearly.
The SEC revoked the registration of each class of ToughBuilt securities (PDF).
Okay, let’s talk about this. I should also point out that the reader emailed in anonymously. I haven’t make any assumptions as to their intentions.
ToughBuilt Stock
ToughBuilt was previously delisted from NASDAQ for not filing mandated financial reports.
According to the SEC order, “ToughBuilt failed to comply” with regulations and “has not filed any periodic reports since the period ended December 31, 2023.”
With the latest order, as I understand it, the Securities and Exchange Commission (SEC) has revoked the trading of ToughBuilt stock.
ToughBuilt Layoffs
ToughBuilt’s Glassdoor employee reviews are behind a paywall.
But, all my ToughBuilt contacts do appear to have been laid off. I didn’t ask for details, and also weren’t provided with any.
ToughBuilt StackTech Roadmap
ToughBuilt has been increasing distribution for a lot of the tool boxes and accessories that were promised in roadmap from a few years ago.
They haven’t announced any new products in quite some time. But, given how many people complained about delays, I think they’ll be more cautious about how they announce future products.
Is this the “nail in the coffin for their ambitions”? Frankly, I don’t know, Things looked to be on the upswing for the brand, with their modular tool box products available at USA tool dealers, online marketplaces, and perhaps most importantly to their bottom-line, Lowe’s stores.
I think it is vital for the brand to demonstrate consistency, and they seem to be have been doing that.
There’s a lot of uncertainty right now, for ToughBuilt and StackTech, and basis for both optimism and pessimism.
As we lack a window into ToughBuilt’s current operations, it would be premature to draw any conclusions.
StackTech Lawsuit Update
The lawsuit brought against ToughBuilt by Meridian International – see Tool Box Infringement Lawsuits Against Klein and ToughBuilt – is still ongoing, with further oral arguments scheduled for November 2026.
ToughBuilt Response
ToughBuilt’s new marketing manager reached out a few months ago, after I reported being surprised that all my contacts had left the company.
I reached out to them yesterday, asking for any comments regarding i) ToughBuilt being revoked from all stock trading due to non-compliance with SEC regulations, ii) ToughBuilt’s layoffs, and iii) ToughBuilt’s product roadmap.
They did not provide a comment, but offered to set up a call with ToughBuilt’s CEO. I have not agreed to call yet because their CEO is likeable and passionate about the company and its tools, and I have found that our conversations have the potential to skew my reporting.
