Is ToughBuilt going out of business? The toolmaker has been the subject of closure and bankruptcy rumours after a turbulent two years. Headlines about financial losses, delayed SEC filings, and a Nasdaq delisting have fueled talk about its shutting down.
However, the brand’s move to over-the-counter trading and “going concern” warnings in its SEC reports raise questions about its brand status and long-term stability. A June 2024 Nasdaq notice confirmed the delisting, citing late annual report filings.
This article examines ToughBuilt’s current position, covering its financial health, retail presence, recent challenges, and their implications for buyers.
Key Takeaways
- ToughBuilt is still operating but now trades on OTC Markets after its 2024 Nasdaq delisting.
- The company’s SEC filings show “going concern” warnings due to ongoing losses and cash strain.
- Products remain available at major retailers like Lowe’s and Amazon, with new StackTech items listed.
- Buyers face elevated risk for warranties and ecosystem support if financial troubles persist.
What is ToughBuilt?
ToughBuilt Industries, Inc. is a U.S.-based designer, manufacturer, and distributor of innovative tools and accessories for the construction, home improvement, and do-it-yourself (DIY) markets.
Founded in 2012 and headquartered in Lake Forest, California, the company is best known for its StackTech modular storage system, professional-grade tool belts, sawhorses, kneepads, and job-site organisation solutions.
While its products enjoy a strong reputation among tradespeople for build quality and thoughtful design, ToughBuilt has faced significant financial challenges, including persistent operating losses, Nasdaq delisting in 2024, and “going concern” warnings in SEC filings.
ToughBuilt At a Glance
| Category | Details |
|---|---|
| Founded | 2012 |
| Headquarters | Lake Forest, California, USA |
| Industry | Tools, Construction Equipment, DIY Accessories |
| Core Products | StackTech modular storage, tool belts, sawhorses, kneepads, job-site organisation, hand tools |
| Target Market | Professional tradespeople, contractors, serious DIYers |
| Key Retail Partners | Lowe’s, Amazon, Home Depot (online), international distributors |
| Stock Ticker | Formerly TBLT on Nasdaq; trades OTC after 2024 delisting |
| Recent Challenges | Nasdaq delisting, going-concern warnings, sustained losses |
| Notable Innovations | Patented tool storage designs, modular storage ecosystems, ergonomic job-site gear |
| Website | toughbuilt.com |
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What “Going Out of Business” Actually Means and Why It is Misused
The phrase “going out of business” is often misused. It officially means a company has permanently closed, liquidated its assets, and stopped trading.
Many brands in financial trouble, such as those with delistings, restructuring efforts, or “going-concern” warnings, are still very much active.
Business Status Terms Explained
| Term | Definition | Applies to ToughBuilt? | Difference from “Going Out of Business” |
|---|---|---|---|
| Going Out of Business | Permanent closure, liquidation, no longer trading. | No | ToughBuilt still operates and sells products. |
| Bankruptcy (Chapter 11) | Court-supervised debt reorganisation while continuing operations. | No | No bankruptcy filing; operations ongoing. |
| Bankruptcy (Chapter 7) | Liquidation of assets and complete shutdown. | No | No bankruptcy filing; brand remains active. |
| Delisting | Removal from a stock exchange for not meeting requirements. | Yes | Affects stock trading, not product availability. |
| Going-Concern Warning | Statement flagging doubt about the ability to continue operations. | Yes | It is a risk disclosure, not a shutdown notice. |
ToughBuilt is not out of business. While it has been delisted from a major stock exchange and flagged financial risks in filings, it continues to produce and sell products, maintain retail partnerships, and launch new tools.
Confusing these challenges with full closure fuels unnecessary rumours.
Is ToughBuilt Going Out of Business?
No, ToughBuilt is still in business. The company continues to manufacture and sell its tools, with products available at major retailers and online marketplaces.
However, it is operating under significant financial pressure, including exchange delisting and “going-concern” warnings in its filings. These challenges signal high risk, but they are not the same as a complete shutdown or bankruptcy.
ToughBuilt Status at a Glance
| Factor | Current Status | What It Means |
|---|---|---|
| Operational | Yes | ToughBuilt is still producing and selling products through key retail partners. |
| Bankruptcy Filed | No | No Chapter 11 (reorganisation) or Chapter 7 (liquidation) filings. |
| Exchange Listing | No (delisted from Nasdaq; trades OTC) | Impacts investor access and visibility but not product sales. |
| Financial Health | Weak | Ongoing losses, cash burn, and “going-concern” warnings. |
| Retail Availability | Active | Products remain on Lowe’s, Amazon, and some Home Depot online listings. |
| Product Development | Active | StackTech modular storage system and other new tools are still launching. |
ToughBuilt’s Timeline: What Actually Happened?
ToughBuilt’s journey from retail growth to financial distress has unfolded through a series of key events.
While the brand has faced funding challenges, late filings, and a stock exchange delisting, it has also continued to launch new products and maintain retail presence.
This timeline shows the pivotal moments that have shaped its current status, without suggesting the company has shut down.
| Period | Event | Impact |
|---|---|---|
| Early Stage | Expanded product catalogue, including StackTech storage system. | Strengthened market position in tool storage and accessories. |
| Capital Raise | Secured $3.5 million in new funding. | Provided short-term liquidity for operations and development. |
| Filing Delays | Missed deadlines for annual financial reports. | Triggered warnings from stock exchange regulators. |
| Exchange Action | Received notice of removal from major stock exchange. | Stock moved to over-the-counter market, reducing investor visibility. |
| Retail Expansion | StackTech and other products appeared on major home improvement retailer’s online store. | Signalled continued demand and retailer interest despite financial challenges. |
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The Numbers: ToughBuilt’s Financial Health Check
ToughBuilt remains operational, but its financial position is fragile. Persistent losses, high cash burn, and warnings in official filings point to serious risk if conditions do not improve.
While a recent funding boost has helped sustain operations, the company’s reliance on external capital and ongoing market pressures continue to weigh heavily on its stability.
ToughBuilt Financial Snapshot
| Metric | Current Status | Implication |
|---|---|---|
| Operating Losses | Continues to post annual net losses. | Erodes capital base and limits reinvestment in growth. |
| Cash Burn Rate | High relative to revenues. | Increases urgency for funding or higher sales volume. |
| Liquidity Moves | Raised $3.5 million via public offering. | Provides short-term working capital; not a long-term fix. |
| Exchange Listing | Delisted from Nasdaq; trades OTC. | Reduces visibility, may deter some investors, and impacts liquidity. |
| Filing Timeliness | History of late SEC filings. | Triggers regulatory warnings and undermines investor trust. |
| Going-Concern Warning | Present in audited annual report. | Auditor signals “substantial doubt” about business continuity. |
| Gross Margins | Pressured by high production and distribution costs. | Limits ability to generate positive cash flow. |
| Inventory Turns | Key performance metric to watch; not fully disclosed in latest filings. | Impacts cash flow efficiency and stocking decisions. |
| Debt Levels | Manageable but trending upward. | May restrict flexibility if revenues remain flat or decline. |
Where Can You Still Buy ToughBuilt Products?
Despite financial pressures and exchange delisting, ToughBuilt products remain widely available through key retail and online channels.
The brand maintains partnerships with major home improvement stores and e-commerce platforms, ensuring ongoing access for contractors, tradespeople, and DIY customers.
Recent online appearances of its flagship StackTech system highlight continued retailer interest, even as the company navigates operational challenges.
| Channel | Availability | Key Products Listed | Notable Observations |
|---|---|---|---|
| Lowe’s (in-store & online) | Active | Tool belts, sawhorses, storage systems, hand tools. | Consistent presence across multiple product categories. |
| Amazon | Active | Full range, including StackTech modules, pouches, and accessories. | Strong third-party and direct listings; competitive pricing. |
| Home Depot (online) | Limited | StackTech storage and select accessories. | Recent online listings suggest renewed or test partnership. |
| Independent Tool Distributors | Active (varies by region) | Kneepads, pouches, work supports, storage products. | Availability varies; often carries niche or pro-grade SKUs. |
| International Markets | Selective | Similar range to U.S. catalog. | Dependent on regional distributors; stock levels inconsistent. |
| Direct from ToughBuilt Website | Active | Full product line with warranty registration. | Useful for securing the latest releases and official accessories. |
What is Next for ToughBuilt: Product Pipeline and Brand Momentum
Even under financial strain, ToughBuilt continues to push forward with product innovation and market expansion.
The company is investing in its flagship StackTech modular storage system while maintaining a steady release of hand tools, job-site accessories, and ergonomic gear.
This ongoing development signals an effort to retain customer loyalty and stand out in a competitive tools market.
| Category | Flagship/Recent Products | Status | Market Impact |
|---|---|---|---|
| Modular Storage Systems | StackTech base units, drawers, and accessories | Actively promoted; stocked at multiple major retailers | Competes directly with Milwaukee Packout and DeWalt ToughSystem 2.0 |
| Hand Tools | Utility knives, snips, tape measures, pliers | Consistent product updates and new SKUs | Expands ToughBuilt’s presence in everyday tradesman tools |
| Job-Site Supports | Sawhorses, work stands, roller stands | Ongoing availability with minor design tweaks | Strong reputation for durability; staple category for pro users |
| Ergonomic Gear | GelFit kneepads, padded tool belts, harnesses | Continued production and sales | Reinforces brand’s professional-grade comfort image |
| Specialty Accessories | ClipTech pouches, holsters, organisers | Integrated with broader ToughBuilt systems | Encourages ecosystem buy-in, increasing repeat purchases |
| Innovation Pipeline | Patented locking systems, modular tool carriers | Patent filings and new model rollouts | Positions ToughBuilt as an innovator in tool organisation |
How ToughBuilt Compares With Major Competitors
ToughBuilt operates in a crowded tool storage and job-site gear market dominated by long-established brands.
Its StackTech system offers modular flexibility and competitive pricing, but rivals often benefit from deeper product ecosystems, stronger distribution networks, and larger marketing budgets.
For buyers, understanding how ToughBuilt stacks up against these competitors helps in making long-term purchasing decisions, especially for ecosystem-based tools.
| Brand | Flagship System | Strengths | Weaknesses | ToughBuilt Advantage |
|---|---|---|---|---|
| Milwaukee | Packout Modular Storage | Extensive ecosystem, premium durability, wide availability. | Higher price points; heavier components. | StackTech offers competitive modularity at a lower price. |
| DeWalt | ToughSystem 2.0 | Robust build, good weather resistance, broad retail presence. | Fewer smaller storage options; bulkier units. | StackTech’s range includes more compact, versatile modules. |
| Ridgid | Pro Tool Storage | Affordable pricing, decent durability, good value for DIYers. | Limited expansion accessories; less pro-focused. | ToughBuilt offers more pro-grade ergonomic gear. |
| Craftsman | VersaStack | Compatible with some other brands, affordable. | Less heavy-duty; fewer job-site accessories. | ToughBuilt offers better durability and modular depth. |
| Husky | Mobile Job Box & Storage Systems | Strong value, widely sold at Home Depot. | Limited modular connectivity compared to others. | StackTech provides full modular integration. |
| Kobalt | Modular Storage Solutions | Budget-friendly, available at Lowe’s. | Narrow accessory selection; less innovation. | ToughBuilt integrates with a broader range of tools and accessories. |
What Buyers Should Consider Before Buying ToughBuilt’s Products
ToughBuilt’s current financial situation may not stop you from buying their products today, but it does create some long-term uncertainties.
For tradespeople and serious DIYers who rely on ecosystem compatibility, warranty coverage, and consistent availability, these risks are worth weighing before committing to large purchases.
| Risk Factor | Description | Why It Matters | How to Reduce Risk |
|---|---|---|---|
| Warranty Continuity | Financial instability may impact ability to honour long-term warranties. | Could leave buyers without coverage for defects or repairs. | Register products immediately and keep proof of purchase. |
| Parts & Accessory Availability | If operations slow, compatible modules and replacement parts may become scarce. | Limits ability to expand or maintain your system. | Purchase critical accessories now; prioritise cross-compatible gear. |
| Ecosystem Lock-In | StackTech accessories may not fit other brands’ systems. | Switching brands later could be costly. | Choose items with universal compatibility where possible. |
| Retail Stock Levels | If demand drops or supply tightens, certain SKUs could disappear. | May force buyers to shop secondary markets at higher prices. | Monitor retailer inventory and buy high-use items in advance. |
| Product Line Continuity | Financial strain could lead to cutting less popular products. | Could affect specific tools or accessories you rely on. | Stick to core products with strong market demand. |
| Resale Value | Brand instability can lower second-hand resale prices. | Reduces value recovery if you upgrade or switch brands. | Focus purchases on high-quality items with universal utility. |
Signals to Watch: Tracking ToughBuilt’s Next Moves
For consumers and industry watchers, monitoring certain developments can help gauge ToughBuilt’s stability and product availability.
These signals will not guarantee the brand’s future, but they provide useful clues about whether the company is recovering, holding steady, or heading toward deeper trouble.
| Signal | What to Look For | Why It is Important |
|---|---|---|
| SEC Filing Timeliness | Regular, on-time quarterly and annual reports. | Demonstrates compliance and can restore investor confidence. |
| Retail Shelf Presence | Consistent or expanding listings at major retailers. | Suggests strong demand and ongoing partnerships. |
| Product Launch Activity | Continued rollout of new tools and accessories. | Indicates investment in innovation and market competitiveness. |
| Cash Infusions or Partnerships | Announcements of new funding, credit lines, or collaborations. | Provides financial runway for operations and development. |
| Gross Margin Trends | Improvements in profitability per product sold. | Signals better cost control and healthier operations. |
| Inventory Levels | Stable turnover without excessive stock clearance. | Reflects healthy demand and production planning. |
| Brand Mentions in Industry Media | Positive coverage in trade publications and tool reviews. | Enhances brand perception and buyer confidence. |
Conclusion
ToughBuilt is not out of business, but it faces serious financial headwinds. The brand continues to produce and sell tools, launch new products, and maintain retail partnerships.
For buyers, the best approach is to enjoy the products now, while staying alert to the signs that could signal major changes ahead.
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Frequently Asked Questions (FAQs)
Has ToughBuilt filed for bankruptcy?
No. ToughBuilt has not filed for Chapter 11 (reorganisation) or Chapter 7 (liquidation) bankruptcy. The company remains operational, producing and selling products through multiple retail channels.
Why was ToughBuilt delisted from Nasdaq?
ToughBuilt was delisted after failing to file its required SEC reports on time and not meeting Nasdaq’s listing requirements. Its shares now trade over the counter (OTC), which impacts investor access but not product sales.
Is ToughBuilt shutting down?
No. While the company has financial challenges and a “going-concern” warning in its filings, it continues to launch products, fulfil orders, and maintain retail partnerships.
Can I still buy ToughBuilt products?
Yes. ToughBuilt products are still available at major retailers such as Lowe’s, Amazon, and some Home Depot online listings, as well as through independent distributors and the company’s own website.
Are ToughBuilt store closures happening?
ToughBuilt does not operate its own dedicated retail stores. Its products are sold through partner retailers, and availability can vary by location and SKU.
Will my ToughBuilt warranty still be honoured?
As of now, ToughBuilt continues to honour warranties. However, given its financial position, it is wise to register your products immediately and keep all proof of purchase.
What are the best alternatives to ToughBuilt?
Popular alternatives include Milwaukee Packout, DeWalt ToughSystem 2.0, Ridgid Pro Tool Storage, Craftsman VersaStack, Husky storage systems, and Kobalt modular solutions. The best choice depends on your budget, durability needs, and desired ecosystem.
What should I watch for to know if ToughBuilt’s status changes?
Keep an eye on timely SEC filings, retail shelf presence, new product launches, funding announcements, and media coverage. Changes in these areas can signal whether the brand is stabilising or declining.
