If you’ve bought a ToughBuilt folding sawhorse or maybe a tool belt in the past, you might be wondering where the company stands these days. There have been rumors floating around — social media comments, worried posts on tool forums, and a handful of headlines. Some customers say their local home centers have thinned out on ToughBuilt products. So is ToughBuilt actually going out of business? As of July 2025, no, not officially. But the story is a lot shakier than most folks realize.
A Company Facing Major Trouble
Let’s start with the basics. ToughBuilt Industries makes construction tools, storage gear, and jobsite accessories. The products are known for their practical design and mid-range pricing—enough for pros but not so costly to scare off the rest of us.
But for about two years now, the company’s finances have been a mess. ToughBuilt has not filed required financial reports with the federal government several times. They’ve struggled to keep up paying bills. Investors started to lose faith last summer. By fall, stock analysts and business sites began flagging the risk of bankruptcy as “very high.”
The Nasdaq Delisting: What Went Down
One of the surest public signs of these problems came when Nasdaq delisted ToughBuilt’s shares in August 2024. At first, it wasn’t about cash. It was because the company hadn’t filed its quarterly and annual financial reports. Nasdaq has strict rules; if a public company can’t show updated numbers, they can boot you from their exchange.
After the delisting, ToughBuilt stock started trading as a penny stock on the OTC (over-the-counter) market. It’s less regulated, a lot more volatile, and generally a place for companies in trouble or very small firms trying to work things out.
Financial Red Flags: Where Things Stand
Some financial sites and analysts now rate ToughBuilt’s risk of bankruptcy above 80%. Those are not great odds. Whenever you see numbers like this, it means banks and investors are basically betting on the company failing to pay its debts in the near future.
Why is the outlook so grim? There are a few clear reasons. ToughBuilt has been running significant operating losses, meaning it spends more than it makes by a wide margin. There’s also the issue of high debt — the company reportedly owed amounts that far outpace its available cash reserves.
Another financial indicator that gets flagged is the debt-to-equity ratio. That just means, “how much does the company owe versus how much value its stock and business really have?” For ToughBuilt, those numbers are considered poor.
Finally, there have been pretty specific warnings that the company could not cover basic expenses. News outlets mentioned rumors of missed rent payments on at least one of its facilities in North Carolina. Missing rent, in a public way, spooks suppliers and vendors, and it usually means cash flow is really tight.
Are They Still Selling Products?
If you check out retail websites or visit some big box stores, you’ll see that ToughBuilt products haven’t vanished. That’s because the company is still trying to keep up with sales and honor its existing customer relationships.
At the start of 2024, ToughBuilt managed to pull in about $3.5 million from a public stock offering. That’s basically selling new shares of the company to anyone willing to buy, with the hope the cash will keep things ticking a little longer. ToughBuilt said some of these funds would go toward “corporate purposes,” which is business-speak for plugging holes wherever things are leaking.
But that money, when compared to how much they owe and spend every month, is really just a small patch — not a long-term fix. There’s always a risk companies in this position use up new funds to pay overdue bills, leaving them right back where they started.
Trying to Get Back in Line with the Rules
ToughBuilt hasn’t just ignored its problems. They’ve told the markets and the public that they plan to submit all overdue financial reports and are working to fix their compliance issues. There’s been talk about bringing in new advisors and legal help to get them back on solid ground with federal regulators.
Since late 2024, there have been press releases with promises to catch up with reporting and meet investor expectations. But without those filings being delivered and accepted, there’s a permanent cloud over the company’s status.
It’s kind of like owing your landlord rent and promising you’ll pay it “soon.” That’s better than denying the problem, but until the check clears, your spot is not secure.
What This Means for Investors
For anyone holding or thinking about buying ToughBuilt stock, this is an extremely risky situation. After being delisted from Nasdaq, the company’s shares are only available on the OTC market. This means fewer buyers and sellers, sharper price swings, and less oversight.
Stocks in serious distress often attract both hopeful “turnaround investors” and opportunists who are just trading on volatility. But betting on a company with an 80%-plus chance of failing is not for the faint of heart.
Investor confidence is naturally shaken. If the company misses another major deadline or announces further losses, the stock can tank in minutes. Day traders might try to catch short-term price spikes, but regular, long-term investors have to be okay with the very real risk of losing everything.
How Did They Get Here? A Quick Look Back
It’s easy to overlook how quickly a business can go from one of many options on a hardware shelf to “in trouble.” Back in 2021, ToughBuilt was signing new retailer deals and talking up product launches. But competition in the construction tool market is fierce, and many big brands have better distribution and loads of cash.
ToughBuilt tried to spend its way into more Home Depot and Lowe’s shelves, but then 2022 and 2023 brought higher costs, weakening demand, and stubborn supply chain issues. Instead of scaling up, ToughBuilt started falling behind on critical filings and struggled with shrinking profits.
By late 2023 and early 2024, credits were drying up, and the odds of bankruptcy started popping up in financial reports.
How Does Bankruptcy Work if It Happens?
A lot of people hear the word “bankruptcy” and imagine a company just disappears. That’s not always the case. Bankruptcy can mean reorganization, where a judge tells the company to restructure its debts and maybe keep operating, though it has to answer to creditors.
On the other side, there’s liquidation — that’s when the company closes, its products are discontinued, and assets get sold off. Customers usually get worried at this stage about warranties, returns, or even finding replacement parts.
At the moment, though, ToughBuilt hasn’t filed for any kind of bankruptcy. The company is “at risk,” but still technically up and running, shipping products, and telling the public it wants to recover.
Will ToughBuilt Get Back on Its Feet?
Recovery stories do happen, though they’re rare when the odds are this long. The essential ingredients would be a strong new round of funding, successful submission of overdue filings, and maybe a new partner company or buyer willing to take on some of the risk.
Bringing in an industry veteran on the management team, for instance, might help restore some credibility. Filing those back reports, opening the books to investors, and patching up trust with suppliers — those are all things that could convince retailers to keep giving shelf space.
Some business watchers follow cases like this daily on stock forums or spot news updates from business sites like SeraBusiness, which track the minor wins and stumbles of companies in distress. Stories and rumors pop up all the time, but until the filings go in and funding gets announced, it’s tough for anyone to claim the company is definitely headed one way or another.
What’s Next for Customers and Fans?
If you’re a customer who likes ToughBuilt tools, the shelves still have products today, but there’s no guarantee that support or replacement parts will be available long-term. It pays to check the company’s website or retail partner pages before assuming service or warranties are locked in forever.
For new business customers, limits on stock or new orders could pop up anytime if the cash crunch gets worse. Sometimes, when companies are in trouble, the best bargains can show up — but so do the biggest hassles if you need help down the road.
The Bottom Line in July 2025
ToughBuilt isn’t officially out of business as of July 2025, but it’s nowhere close to a stable situation. The company lost its major stock exchange listing, carries heavy debt, faces poor odds of financial survival, and is scrambling to make good on missed filings.
Day-to-day, ToughBuilt is still selling tools and making the case it can recover. Whether that actually happens depends on pulling off some quick and convincing financial fixes. If you’re watching this story, it’s one worth checking back in on — not because there’s a prize at the finish line, but because it shows how fast things can get real for companies you see on store shelves every day.