Treasure Chest Pets Toys
DEAL
EPISODE SUMMARY
🕓 Air Date: October 6, 2009
Asking For:
$150,000 for 20%
Investor:
Barbara Corcoran, Daymond John (50/50)
Deal:
$150,000 for 60%
PRODUCT SUMMARY
Treasure Chest Pets offers plush toy organizers for children, featuring patented designs with magnetic attachments and secret compartments, retailing for $19.99 each.
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Background Story
Based in Tucson, Arizona, Treasure Chest Pets was founded by Lisa Lloyd, a determined entrepreneur facing financial hardship. Lisa, a mother of three, invested $100,000 of her own money and relied on credit to kickstart her business. With her house on the brink of foreclosure and a household bustling with family members, Lisa’s desperation to turn her fortunes around was palpable.
The idea for Treasure Chest Pets arose from Lisa’s personal experiences and observations as a parent. Recognizing the need for functional yet fun storage solutions for children’s toys, she conceptualized plush toy organizers that would appeal to both kids and parents. The patented designs feature magnetic attachments and secret compartments cleverly disguised as stuffed animals. Lisa’s background in product development, coupled with her drive to provide for her family, fueled her determination to bring her vision to life.
Despite facing numerous setbacks and sleepless nights, Lisa remained steadfast in her pursuit of success. Her journey on “Shark Tank” showcased not only her innovative product but also her resilience in the face of adversity. With her family’s future hanging in the balance, Lisa’s pitch encapsulated the passion and determination of an entrepreneur striving to turn her dreams into reality.
The Product
Treasure Chest Pets offers a unique solution to the challenge of organizing children’s toys with its innovative plush toy organizers. Each Treasure Chest Pet is designed to resemble a stuffed animal, but with added functionality. The toys feature magnetic attachments and secret compartments cleverly integrated into their designs.
Children can use the Treasure Chest Pets both as cuddly companions and as practical storage solutions. The magnetic attachments allow for easy opening and closing, revealing hidden compartments within the plush toy’s body. These compartments provide ample space for storing small toys, accessories, or other belongings, helping to keep play areas tidy and organized.
The foam construction of the toys ensures that they maintain their shape while accommodating various items inside. With a retail price of $19.99 each, Treasure Chest Pets are affordable and accessible to families looking for innovative storage solutions for their children’s toys. They can be purchased online through the company’s website or at select retail stores where the product is available.
The product’s dual functionality as a plush toy and a storage organizer makes it a versatile and practical addition to any child’s room. Its playful design and hidden compartments add an element of fun to the process of tidying up, encouraging children to take ownership of their belongings while providing parents with a convenient storage solution.
How It Went
The company’s position before Shark Tank
Treasure Chest Pets, founded by Lisa Lloyd, faced significant challenges despite its innovative product offering. With approximately $100,000 in sales over the past year, the company demonstrated potential but struggled to scale due to undercapitalization. Lisa, the sole founder, invested $100,000 of her own money and relied heavily on credit to fund the business, risking personal financial stability in the process. The company’s distribution network included partnerships with approximately 200 retail stores, predominantly boutique outlets.
However, Treasure Chest Pets had not yet penetrated mass retail channels due to limited resources and undercapitalization. Lisa expressed interest in expanding into larger retailers but lacked the necessary funding to support such growth. Treasure Chest Pets’ primary customers were parents seeking practical yet playful storage solutions for their children’s toys. Despite facing foreclosure and financial strain, Lisa remained determined to fulfill pending orders and meet growing demand. The company’s current funding primarily came from Lisa’s personal investments and credit leverage, highlighting the need for additional capital to sustain operations and facilitate expansion.
While Lisa demonstrated resilience and dedication to her business, Treasure Chest Pets’ financial health remained precarious. With inventory constraints and pending fourth-quarter orders, the company’s available capital was insufficient to meet growing demand and capitalize on potential opportunities. The company’s structure appeared to be centralized around Lisa as the sole founder and decision-maker, emphasizing the need for strategic partnerships or external investment to support growth and stabilize the business.
The Negotiations:
During the negotiations on Shark Tank, Treasure Chest Pets founder Lisa Lloyd faced a tough decision as she sought investment to propel her struggling business forward. Lisa initially pitched her company, seeking $150,000 in exchange for 20% equity. Barbara and Daymond were intrigued by the product but proposed a joint offer of $150,000 for 60% equity. Recognizing the value of their expertise and financial backing, Lisa considered their offer seriously.
However, Robert intervened with a different proposal, offering a $150,000 line of credit without taking any equity. His offer emphasized support beyond financial assistance, providing operational assistance and resources to help Lisa navigate the challenges of scaling her business. Despite the attractive terms, Robert’s proposal required Lisa to forego external assistance in exchange for maintaining full ownership of her company. Ultimately, Robert’s offer prompted Barbara to reconsider, leading her to join forces with Daymond to match Robert’s offer. They offered $150,000 for 60% equity, providing Lisa with the necessary funding to fulfill pending orders and sustain her business.
Lisa recognized the value of their combined offer, acknowledging that it aligned with the company’s needs and would provide long-term support for growth. In the end, Lisa accepted the joint offer from Barbara and Daymond, expressing gratitude for the opportunity to work with them and overcome the challenges facing Treasure Chest Pets. The negotiations showcased Lisa’s resilience and determination as an entrepreneur, as well as the Sharks’ willingness to collaborate to support promising ventures.
