Highlights
- Rick Siegel and Jennie Nigrosh pitched Green Garmento, a reusable dry cleaning bag.
- They sought $300,000 for 20% equity in their business.
- Post show, they have achieved significant sales growth, reaching $5 million in annual revenue by October 2022.
Overview
| Category | Details |
|---|---|
| Name | Green Garmento |
| Founders | Rick Siegel and Jennie Nigrosh |
| Industry | Eco-Friendly Products |
| Product | Reusable dry cleaning bags |
| Funding | $300,000 |
| Investment Ask | $300,000 |
| Equity Offered | 20% |
| Valuation | $1.5 million |
Green Garmento entrepreneurs Rick Siegel and Jennie Nigrosh pitch their re-usable dry cleaning bag to the Sharks in episode 415. The husband and wife team are accidental entrepreneurs who created the Green Garmento out of frustration over the nearly 130 million pounds of dry cleaning bags used each year in the USA. The couple, who have Hollywood roots, decided they wanted a greener solution to the dry cleaning bag problem, so they created the Green Garmento in 2008. With over $700K invested, they set out to re-educate dry cleaners on the viability of using a renewable, green dry cleaning bag. The Green Garmento is made from recycled oil sludge and dry cleaners can sell them to their customers or provide them free; either way, the bags pay for themselves because there is no more need to purchase disposable, plastic bags. So far, most dry cleaning customers have had favorable things to say about the Green Garmento and the green dry cleaning bag concept.
Green Garmento in the Shark Tank
Jennie Nigrosh comes to episode 415 seeking $300,000 in return for 20% equity in her business. She explains that US drycleaners process 1.4 billion pieces of drycleaning each year, producing 300 million pounds of plastic bags.
The Green Garmento reusable dry cleaning bag can be used as a hamper, either hung from a hook or on a hamper frame. When the consumer is ready to take their clothing to the drycleaner, it converts into a duffle.
The Sharks are impressed, but Mr. Wonderful, Kevin O’Leary, goes straight for the meat, asking “Cool idea, but how am I going to make money?”
Nigrosh explains that her company will reach $1 million in sales. In the current year, they’ve made $260,000, with projected sales of $400,000. The bags sell for $4 each, and each are printed with the individual dry cleaner’s logo. The cost of producing the bags is under $2. The bags carry a utility patent.
Kevin O’Leary wants to know if the business is turning a profit. Nigrosh confesses that they’ve been losing money, even with healthy sales. Nigrosh and her husband have invested $380,000 in the company. They also have non-equity investors who are taking 9% of the sales to repay the investments, which total $9oo,ooo. The Sharks are unhappy with the news that the company is losing money, even with strong sales.
Did Shark Tank Invest In Green Garmento?
Robert Herjavec likes the product, but calls the loan an “elephant in the room.” It’s too big for him, and he’s out. Barbara Corcoran thinks the “product is very well designed and very clever,” but that investing would be “buying into a problem.” She’s out. Kevin O’Leary says that “the fundamental truth is, people want to save the planet, unless it costs them something.” He doesn’t believe enough people will be willing to pay extra for garment bags, and he’s out.
Mark Cuban says that “debt is not your friend.” He’s out. The final Shark, Daymond John says that the business has turned “from cleaning bags, unfortunately, into a body bag,” due to the overwhelming debt load. He’s out, and Nigrosh leaves the Tank with no Shark deal.
Green Garmento Shark Tank Update
In spite of her failure to lure a Shark, Nigrosh continues to sell her Green Garmento bags through drycleaners throughout the US and in 17 countries around the world. As a new company, the struggle to get out from under the huge debt load may sink Green Garmento, but if current sales remain strong, Nigrosh may have a long-term winner, taking her garment bag company from the red into the black, and finally generating some green.
By 2014, a year after appearing, she’s sold nearly one million units and has her bags in over 1000 drycleaners nationwide. Fast forward to October, 2022 and she’s doing $5 million in annual revenue.
Posts about Green Garmento on Shark Tank Blog
Green Garmento Information
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