Tough Tie Shark Tank Update - Net Worth, Pitch & Deal - Shark Tank Insights (2024)

Ties were an essential item of men’s wardrobe. As much as they added a statement to a man’s attire, they were also hard to take care of. Moreover, men with kids faced the problem of getting their ties trashed by their babies. Hence, Kevin Shoemaker and Skylar Bennett got together to create an innovation in the field of men’s fashion. Tough Tie featured durable and unique ties that were sustainable and stylish.

Kevin and Skylar asked $100,000 in exchange for a 15% stake in their company. Sharks were hooked by the owner’s great presentation but were skeptical about its success. Was Tough Tie able to tie the Sharks down for a contract? Find out in our Tough Tie Shark Tank Update!

Tough Tie Net Worth

Kevin Shoemaker and Skylar Bennett asked for a $100,000 investment in exchange for 15% equity in their company. This meant they valued their company at approximately $666,667. They made a deal with Robert Herjavec for $100,000 in exchange for 35% of the company. This new deal valued the company at about $285,714. However, the deal was never finalized. After the show aired, Tough Tie rebranded to Tough Apparel and grew to $4 million in annual sales as of June 2022. With an estimated 10% yearly growth rate (typical business growth), the current net worth of Tough Apparel is about $4.84 million.

Tough Tie Shark Tank Update

What Happened To Tough Tie After Shark Tank?

Tough Tie was able to get Robert Herjavec on board with a deal of $100,000 in exchange for 35% of the company’s stakes. However, the deal was never finalized. The company is still in business but has upgraded from Tough Tie to Tough Apparel. It has grown to $4 million in annual sales as of June 2022. Aside from socks, belts, and ties, the company has expanded its collection to dress shirts. They have also introduced various accessories including tie bars, wash bags, and tie hangers.

Did Tough Tie Get a Deal On Shark Tank?

Sharks seemed to be interested in the investment initially. They were hooked by the owner’s creative and interactive presentation. Mark Cuban declined the offer and stated the lack of vision as the primary reason. He highlighted the availability of various alternatives including polyester ties. Daymond also backed off of the deal as the target audience was only men. For him that was a tight segment of the audience.

Lori Greiner was impressed by the owner’s engaging presentation but she was skeptical regarding the success of the business. Hence, she declined the offer. Kevin O’Leary focused on the statistics of the business and emphasized the low-profit margin. He refused to invest and stated that it would take seven years just to get his capital back. Robert Herjavec seemed interested in the invention and made an offer. He offered the company $100,000 in exchange for 35% stakes. The owners accepted the offer.

Founders Backstory

Kevin and Skylar were fathers and often faced the problem of getting their ties destroyed by the infants. The infants would often vomit on the ties. This would result in the ties getting stained. The stains often didn’t go away even after dry cleaning. Ties were a delicate accessory in the men’s wardrobe and were high maintenance. To solve the problem, Kevin and Skylar invented durable and sustainable ties. These ties were wrinkle-proof and machine-washable. The material was water resistant making it a go-to product for men to wear. Tough Tie offered various unique designs for their customers.

Initial Pitch

Kevin Shoemaker and Skylar Bennett were ready to get the Sharks on track with their vision and secure investments for the company. They asked for $100,000 in exchange for a 15% stake in their company. The duo displayed an engaging and captivating demonstration. They explained how the ties get damaged in daily life, especially with kids. The infants usually spit, chew, and vomit on the ties which destroys the fabric. Moreover, ties are high maintenance and need dry cleaning.

The founders demonstrated various features of ties under Tough Tie. The ties were made of material that was wrinkle-free and machine washable, making it easy to handle. The material was water and stain-resistant making it a go-to product for men to wear. Tough Tie offered various exclusive designs. The ties were also sewn five times more than regular ties. This made them durable and indestructible.

Queries About the Product

Kevin O’Leary asked for samples to verify the product quality. The owners provided the sharks with custom-made shark-themed ties with their faces on them. They were also given a set of socks and a unique design tie from the Tough Tie products. The sharks loved the custom-made ties and were delighted with the socks. The owners stated that it took them only a week to design and manufacture the final product. Kevin O’Leary confirmed that they could create customized ties with images on them. Skylar explained that they handled the printing process at home using the Dye Sublimation process. Kevin was responsible for generating designs and could immediately produce the output.

Robert and Mark inquired about their backstory. The owners revealed that they were young commercial real estate professionals and each of them had 3 kids. Ties were a part of the attire in their profession and the kids usually destroyed them by spitting or chewing on them. Hence, they developed a sustainable product for everyday use. Kevin O’Leary questioned about their main profession to which the owners assured that they had quit their real-estate career and were focused on Tough Tie.

The business wasn’t supporting the family as it was in its transitional stage and their wives were working full-time to support the families. Robert inquired about the logistics and sales of the products. Skylar explained that they made $450,000 in live sales. They made $208,000 last year and had acquired $200,000 by mid-year. They were aiming to make $400,000. Mark inquired about the production costs. Skylar explained that ties were sold for $45 per piece in retail and cost them $15 to make them. He also clarified that they were selling the product primarily on their websites.

Robert was concerned about the profit margin. Skylar assured that they would make $40,000 profit from $400,000 worth of sales. He was disappointed by the low profit. Skylar revealed that they spent $10,000 on paid advertisem*nts per month which got them a 200% return. Daymond inquired about the debt and initial investments. The owners disclosed that they invested $43,000 combined and were in $150,000 of debt as they sold their houses. Robert highlighted the decreasing trend of wearing ties among the new generation. The owners assured that the company would expand to shirts and other products.

Shark’s Response and Final Deal

Tough Tie was an essential part of men’s outfits even with its declining trend. However, Mark backed off from the offer as he couldn’t see the vision for the company. He highlighted that there were various alternatives in the market including polyester ties. Daymond rejected the offer as the business was only targeting men. He stated that it offered few opportunities for growth with such a tight segment of the audience. Robert advised them to build a perfect enterprise before creating an innovative brand.

Lori was impressed by the owner’s demonstration but was skeptical regarding the success of the product. Hence, she also refused to invest. Kevin O’Leary inquired about the number of ties they had sold. Skylar disclosed that they were expecting to sell 10,000-13,000 units of ties in the following year. Kevin refused to invest in the business as it would take seven years at 20% profit just to get his capital back.

Robert seemed interested in the business and offered them $100,000 at a 35% stake in the company. Kevin gave a counteroffer of $100,000 at a 25% stake in the company. But Robert was firm on his offer. Skylar tried to negotiate to get equal stakes in the company by 33.3% but was faced with Robert’s absolute decision. In the end, the owners said yes to Robert’s offer.

Product Availability

After airing on the Shark Tanks, the Tough Tie upgraded to Tough Apparel. The products are available on their website. The website also has a blog section that has detailed blog posts on the products. Aside from the website, the company has social media accounts to gain feedback and engage customers.

Conclusion

Tough Tie successfully made an impression on the Sharks with its innovative, durable ties. Despite securing a deal with Robert Herjavec, the agreement ultimately fell through. However, the company continued to grow rebranding as Tough Apparel. Today, Tough Apparel offers a wider range of products, including ties, belts, socks, dress shirts, and accessories.

Their ability to adapt and expand has led to significant success, with annual sales reaching $4 million as of June 2022. The company’s focus on quality, sustainability, and customer engagement has allowed it to grow in the competitive men’s fashion market. Despite the challenges faced by Shark Tank, Tough Apparel has proven its resilience and continues to thrive in the industry.