Fortress Winter Clothing
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 5, 2020
Asking For:
$600,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Fortress Clothing offers cold-weather apparel with patented insulation technology, promising to keep users warm even when wet.
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Background Story
Founded by Dale Lewis, Fortress Clothing aims to revolutionize cold-weather apparel. Dale, a serial entrepreneur, faced significant challenges before finding success. After three failed ventures, he built a telecommunications company from zero to $33 million over nine years, leading to a successful exit and his retirement at 40. Dale, a father of eight, sought a new venture and, inspired by personal experiences and the need for market validation, created Fortress Clothing in 2012.
The company initially focused on industrial workwear for extreme temperatures, primarily targeting the oil industry. However, economic fluctuations, particularly in the oil market, impacted the company’s growth. Despite historical sales of $3.5 million since 2012, the recent year’s performance suffered due to the market’s unpredictability. Dale entered the Tank seeking not only investment but also strategic partnerships and distribution channels, particularly targeting influencers to help position Fortress Clothing in the market.
The Product
Fortress Clothing’s key innovation lies in its patented insulation technology designed to address the challenges of traditional cold-weather clothing. The clothing promises three main benefits: warmth even when wet, the need for fewer additional layers, and a broad comfort spectrum.
The product line includes various items such as base layers, hoodies, parkas, gloves, and vests, each incorporating Fortress Clothing’s disruptive insulation. Dale showcased the technology by subjecting himself to extreme cold conditions, emphasizing the effectiveness of their insulation even when soaked. The base layer, for instance, is designed to be comfortable in temperatures ranging from 70 to -10 degrees Fahrenheit.
To demonstrate its wetness resistance, Dale shared a video where he submerged himself in freezing water wearing Fortress Clothing. Despite the challenging conditions, the insulation technology ensured he remained warm once out of the water.
While the company initially targeted the industrial workwear sector, Dale expressed a desire to expand into retail, appealing to outdoor enthusiasts and athletes. However, the Sharks raised concerns about the company’s focus and strategy, suggesting a need for clarity in their marketing approach.
How It Went
The company’s position before Shark Tank
Fortress Clothing had a history of success, achieving $3.5 million in sales since its inception in 2012. However, recent challenges were attributed to the company’s reliance on the oil industry. In 2018, Fortress Clothing faced a significant downturn, recording $407,000 in sales, primarily due to the oil market’s volatility. Dale explained that economic fluctuations, particularly in oil prices, impacted their ability to stay focused and thrive.
The company sought to pivot and explore opportunities beyond the industrial sector, targeting outdoor enthusiasts and athletes. Dale’s vision was to leverage the Sharks’ influence and distribution channels to penetrate new markets and revitalize the business. The Sharks expressed concerns about the company’s lack of focus and clear strategy, particularly as Dale aimed to transition into the retail sector.
Despite historical success and a robust reputation for their insulation technology, the recent financial performance raised skepticism among the Sharks. Fortress Clothing had yet to tap into its full potential, and the Sharks questioned Dale’s ability to articulate a cohesive plan for the future. The absence of a defined strategy and the uncertain direction of the company influenced the Sharks’ decision not to invest.
The Negotiations:
The negotiations began with Dale seeking $600,000 for 15% equity in Fortress Clothing. Dale emphasized disruptive insulation technology and its potential applications in various industries, from industrial workwear to outdoor and athletic wear. Barbara suggested positioning the company as an underwear brand, focusing on a single product that could cater to various industries.
The Sharks were concerned about the lack of a clear market strategy and the company’s recent financial downturn. They questioned the shift from industrial workwear to retail, citing the challenges of competing in the fashion space against established brands. Despite the technology’s appeal and Dale’s successful entrepreneurial background, the Sharks were reluctant to invest $600,000 without a well-defined market strategy and clear direction for the company’s future.
Ultimately, none of the Sharks made an offer, expressing reservations about the company’s focus and Dale’s ability to navigate the challenges of the retail sector. Dale left the Tank without securing a deal but remained hopeful about the potential success of Fortress Clothing with a clearer market strategy.
