Long Wharf Supply Co. Apparel
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 15, 2021
Asking For:
$375,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Long Wharf Supply Co. creates high-quality fisherman's sweaters made from a blend of recycled oyster shells, recycled water bottles, and natural lambswool. Each sweater sold helps reseed up to 30 oysters, contributing to cleaning waterways and reducing waste.
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Background Story
Founded by New England siblings Michael and Lauren Lamagna, Long Wharf Supply Co. has a deep-rooted commitment to environmental conservation. Michael’s journey began when he returned to his hometown after a layoff from a successful career in e-commerce and fashion. He found himself working on lobster boats, a stark contrast to his previous work, and it was during this time that he became acutely aware of the ocean’s dire pollution problem, especially the excessive plastic and waste contamination. Witnessing this environmental crisis firsthand ignited his determination to make a positive change.
Long Wharf initially entered the market with a focus on waxed canvas and leather goods. However, driven by their shared passion for environmental stewardship, the Lamagna siblings expanded their vision to include something truly unique – fisherman’s sweaters crafted from a blend of recycled materials and oyster shells. This innovative approach aligned with their mission to promote sustainable fashion while actively contributing to the vital task of cleaning up the oceans.
The Lamagna siblings’ journey represents a compelling fusion of personal conviction, entrepreneurial spirit, and a commitment to addressing one of the most pressing environmental challenges of our time. Their story encapsulates the essence of Long Wharf Supply Co.’s mission – fashioning a better, cleaner future for our oceans through sustainable practices.
The Product
Long Wharf Supply Co.’s flagship product, the fisherman’s sweaters, embody their commitment to sustainability and ocean conservation. These sweaters are a testament to their innovative approach to fashion and environmental responsibility. Comprising a unique blend, they consist of 50% recycled materials, which include oyster shells and repurposed water bottles.
This sustainable foundation is complemented by 10% lambswool for warmth, 20% nylon for durability, and 20% plant-based viscose for added comfort. What sets these sweaters apart is their dual purpose. Not only do they provide comfort and style to the wearer, but they also actively contribute to the reseeding of oysters.
For every sweater sold, Long Wharf Supply Co. supports the reseeding of up to 30 oysters, each capable of filtering an impressive 50 gallons of seawater daily. This innovative approach to fashion not only reduces waste but actively participates in cleaning and rejuvenating our ocean ecosystems.
Additionally, the company is working on expanding its product line to include a cotton and recycled-material blend, making their offerings more versatile and affordable, thus broadening their reach and influence in the realm of sustainable fashion.
How It Went
The company’s position before Shark Tank
Long Wharf Supply Co. has been running as a bootstrapped venture, with Michael and Lauren Lamagna personally engaged in every facet of the business. In the past year alone, their diligent efforts yielded sales totaling $495,000, reflecting a robust financial performance. What’s even more striking is their impressive gross average margin of 80%, highlighting the brand’s ability to balance sustainability with profitability.
The company’s customer acquisition costs currently stand at $41 per customer, indicating an efficient marketing strategy. It’s worth noting that Long Wharf is more than just a business; it’s a family endeavor. During their pitch, Michael displayed his commitment to their partnership by offering Lauren 10% equity in the company, a gesture she readily accepted. This move aligns with their shared vision and dedication to the brand’s mission.
Looking ahead, Long Wharf Supply Co. aspires to carve out a prominent role in the circular economy, making sustainable fashion more accessible and appealing to consumers. Their focus on creating environmentally responsible products while actively participating in ocean cleanup positions them as a brand with a dual purpose – style and stewardship. The company’s remarkable performance and mission-driven approach are indicative of a promising future as they continue to champion sustainable practices in the fashion industry.
The Negotiations:
During the negotiation in the Shark Tank, Long Wharf Supply Co. faced intense scrutiny and offers from the Sharks. Michael and Lauren entered the tank seeking $375,000 for 15% equity in their company. However, Peter made a bold counteroffer by offering the full $375,000 but demanded a substantial 45% equity share, which caught the entrepreneurs off guard. They declined Peter’s offer, but the negotiation was far from over.
As the discussion continued, Lauren received 10% equity from Michael during the negotiation, bringing Peter’s revised offer to 35% equity. The Sharks raised concerns about the high valuation and suggested exploring more affordable product options to scale the business. Despite the passionate pitch and the significance of their mission, the siblings held their ground and decided not to accept Peter’s offer. The negotiation ended without a deal with Peter and the other Sharks dropping out.
Ultimately, Long Wharf Supply Co. showcased their determination and commitment to their vision, opting to retain more equity in their company. While they did not secure a deal in the tank, they left with newfound clarity about their business’s value and potential. The negotiation highlighted the importance of finding the right partner who aligns with their mission and vision for sustainable fashion and environmental conservation.
