The Green Garmento – Laundry Bag
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 8, 2013
Asking For:
$300,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Green Garmento offers a reusable garment bag solution to eliminate single-use plastic waste from dry cleaning, providing a cleaner closet and planet.
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Background Story
Jennie Nigrosh, the president of The Green Garmento, was motivated to tackle the environmental issue of single-use plastic waste generated by dry cleaning. She noticed the excessive use of plastic bags in the industry and, along with her husband, developed the idea for a reusable garment bag.
Their mission was to provide an eco-friendly alternative to traditional plastic bags while also addressing the need for convenience and functionality in storing and transporting dry-cleaned clothing. With a background in sustainability and a passion for environmental conservation, Jennie embarked on this journey to make a positive impact on both consumers and the planet.
The Product
The Green Garmento is a multifunctional bag designed to revolutionize the dry-cleaning experience. It serves as a space-saving hamper, a duffel bag for transporting clothes to the dry cleaner, and transforms into a hanging garment bag for storing clean clothes.
Made from durable, breathable material, the bag replaces single-use plastic and helps prevent clothing from wrinkling. Customers can purchase customized bags directly from dry cleaners or online, with prices typically around $4 per bag.
The company focuses on promoting sustainability and convenience, offering a practical solution to reduce plastic waste while enhancing the dry-cleaning process.
How It Went
The company’s position before Shark Tank
Despite achieving significant sales milestones, The Green Garmento has yet to turn a profit. With projected sales nearing $400,000, the company faces challenges in profitability due to high operational costs and debt obligations. Jennie and her husband have invested over $380,000 of their own money into the business, along with securing additional funding from non-equity investors, totaling approximately $900,000.
However, the company’s financial health is strained by the burden of debt, with monthly losses of around $10,000. Despite partnerships with dry cleaners nationwide and a patented product, the company struggles to overcome financial hurdles and achieve sustainable growth.
The Negotiations:
The Sharks expressed concern over the company’s financial performance and debt burden, ultimately leading to no deal being made. Despite recognizing the product’s potential and environmental benefits, the sharks were hesitant to invest due to the company’s lack of profitability and substantial debt.
The negotiation highlighted the importance of understanding financial metrics and managing capital effectively in entrepreneurial ventures. Despite facing rejection, Jennie remains determined to pursue her mission of reducing plastic waste and promoting sustainability through The Green Garmento.
