The Green Garmento Shark Tank Pitch
The Green Garmento, invented by Jennie Nigrosh, provides an environmentally friendly way to eliminate the plastic bags and the struggle with twist ties. The bag has multi-functions. It is a duffle bag style laundry bag, and converts to a garment bag when the dry cleaner sends it home.
The Green Garmento has $260,000 for year to date sales, and projects to $400,000. They sell directly to dry cleaners and the bags cost under $2, and sell to dry cleaners for $4.
Most dry cleaners don't actually do the cleaning at their location, they send it out to another company they contract with. The bags save the dry cleaners money. They have utility patents on the Green Garmento. Suits will wrinkle if you don't have them in the plastic.
The company is still not profitable after four years of business. They are burning $10,000 a month, and she doesn't know how much they lost last year. They have $380,000 of their money in, and they have debt that is costing 9% on $900,000 on their company.
The thing that I don't understand is why do entrepreneurs hide debt when they pitch in Shark Tank? Not disclosing debt kills the deal in due diligence.
The Green Garmento Episode Data
- Company: The Green Garmento –Website
- Entrepreneur: Jennie Nigrosh
- Ask: $300,000 for 20% equity
- Episode Season 4 Episode 415
- Companies in this episode:
- First Aired: 02/07/2013
- Deal: No Deal
What do the Shark Tank Investors say about The Green Garmento?
- Mark Cuban – tells her that she is learning a hard lesson, and debt is not an entrepreneurs friend. He is out.
- Daymond John – says unfortunately your turning a cleaning bag into a body bag. He is out.
- Kevin O'Leary – The problem with Green is it doesn't work unless there is an economic reason. That's why most green things don't work. He is out.
- Barbara Corcoran – feels like she would be buying into a problem. She is out.
- Robert Herjavec – thinks they have a great product, and their is an elephant in the room and they have to find it. He is out.
The Green Garmento after Shark Tank
Turns out that the Green Garmento has dry cleaners contacting them from all over the country and their sales went through the roof. She is doing well with the Shark Tank Effect. The product line expanded and her bags are now into retail as well as being customized for companies like Mercedes Benz. You can buy their bags on Amazon.