How has Tough Tie’s net worth changed since Shark Tank?

It’s not always a good idea for a father to wear an expensive tie in front of his kids. Ties are made of delicate fabrics and can get damaged easily. Kevin Shoemaker and Skylar Bennett realized this, so they founded Tough Tie. They pitched their company on Shark Tank and landed a deal with Robert Herjavec. As of 2024, Tough Tie is valued at $3 million.

Founders: Meet Kevin and Skylar

Kevin Shoemaker is from Mesa, Arizona and has a Bachelor of Business Administration from Arizona State University. His partner, Skylar Bennett, is also from Arizona but lives in Phoenix. Skylar studied accounting and received an associate degree from Utah Valley University and a bachelor’s degree from Arizona State University.

They both finished college at the same time and tried their hand at real estate: Kevin worked as a marketing director for Menlo Group Commercial Real Estate, while Skylar worked as an industrial specialist for the same company.

From selling houses to selling ties

As aspiring real estate agents, Shoemaker and Bennett wore suits every day. They became fathers around the same time and witnessed their kids ruin their favorite ties. They put their heads together and launched a product in 2017 with a $43,000 investment.

They worked with a fashion designer to create ties that were durable but beautiful. They named the company Tough Tie, but also sold socks and belts. In its first year in business, Tough Tie generated $208,000 in revenue under the direct-to-consumer model.

Tough Tie’s Shark Tank Project

Sales are going well, but Kevin and Skylar are $150,000 in debt. The entrepreneurs are tapped to appear on Shark Tank Season 9, hoping to get 15% equity for $100,000.

The founders were optimistic, but the mood changed when they released their net profit forecast for the year. Tough Tie forecasted $40,000 in sales and $40,000 in profit. The company’s cash flow was tight because they had to spend money on paid marketing to continue to attract customers.

Suddenly, Robert Herjavec offered $100,000 for 35% of the shares. The founders made two counter-offers, but finally accepted Robert’s offer. Herjavec was so ruthless that even Kevin O’Leary was surprised by his greed.

After Shark Tank: Renamed to Tough Clothing

According to looper.com, the deal with Robert Herjavec was not completed after the show aired. Most likely, the founders changed their minds and decided to forgo the 35% cut due to the boost in sales after appearing on TV. Additionally, Robert was not mentioned in their blog post about participating in Shark Tank.

As the product range continued to expand, the company changed its name to Tough Apparel. Tough Apparel added new designs to its formal ties, socks, belts, and buckles. Not only that, they also began selling durable shirts. These shirts can be purchased at ToughApparel.com or purchased wholesale through Faire.com.

Many of their tie designs have received five-star reviews from customers on their website. Tough Apparel is now thriving and currently has annual revenues of $3 million to $4 million. Overall, the company is currently valued at approximately $3 million.

Categories: Shark Tank
Source: dut.edu.vn