Cozy Bug Clothing
DEAL
EPISODE SUMMARY
🕓 Air Date: October 12, 2012
Asking For:
$50,000 for 25%
Investor:
Daymond John
Deal:
$50,000 for 30%
PRODUCT SUMMARY
Cozy Bug offers children's clothing, specializing in pillowcase dresses designed to grow with the child.
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Background Story
Aly Lessor, the founder of Cozy Bug, drew inspiration from her daughter Cosette and her mother-in-law’s tradition of sending monogrammed pillowcase dresses from Alabama. After receiving numerous compliments on her daughter’s dresses, Aly saw an opportunity to turn her passion into a business. With a background in sales and driven by the desire to create a clothing line that was not only adorable but also practical, Aly founded Cozy Bug. Despite facing challenges, including unjust dismissal from her job for needing to pump breast milk, Aly used the settlement money to kickstart her venture.
The Product
Cozy Bug’s signature product is its pillowcase dresses, crafted from vibrant fabrics and designed to adjust to a child’s growth. The dresses feature adjustable ties at the shoulders, allowing for extended wear as the child grows.
Additionally, Cozy Bug offers a range of complementary items such as jackets, jeggings, shirts, and hair bows. The products are primarily sold online, with a significant portion of sales generated through platforms like Zulily. Recently, Cozy Bug expanded its product line to include dancewear under the brand Dance Bug.
How It Went
The company’s position before Shark Tank
Cozy Bug has experienced rapid growth, with over $300,000 in sales within just 30 days of launching online. The company primarily operates online and has garnered attention through platforms like Zulily. Additionally, Cozy Bug recently launched its own dancewear line, Dance Bug. While the company has shown impressive sales figures, Aly, the sole employee, acknowledges the need for additional expertise and funding to expand internationally and reach its full potential.
The Negotiations:
Aly received three offers from the Sharks. Kevin offered $50,000 for zero equity but requested a royalty for each dress sold. Lori and Daymond both offered $50,000 for a 30% stake in the company. While Lori emphasized her connections to retailers and QVC, Daymond highlighted his ability to expand the brand globally. Despite the enticing offers, Aly ultimately chose to partner with Daymond, valuing his expertise and vision for the company’s growth.
