'Shark Tank' Season 12 Episode 2: Who owns BootayBag? Here's how guest shark Kendra Scott ditched Barbara Corcoran
Guest shark Scott comes forward to help BootayBag founder Ellyette Gheno and proposes a deal of investing $500K for a 10% stake in the company
Shopping for intimates can be a real herculean task. Aside from paying a hefty price for these staples of every wardrobe, finding perfectly fitting yet extremely comfortable lingerie is a thing of dreams for many women. When BootayBag founder Ellyette Gheno experienced the same hassle of scouring through discount bins and lingering around sales racks in the hopes of finding her dream undergarments, she couldn't help but feel that shopping for something as essential as undergarments shouldn't be such a task.
So, she came up with the perfect solution, a subscription service for undergarments, where the customers can pick and choose the design and color of their underwear and receive it every month in their mail, all from the comfort of their homes, without spending hours at a store. The customer also has an option to halt or end their subscription whenever they want. So, when Ellyette presented the BootayBag pitch to the sharks on 'Shark Tank, it was hard for them not to take the bait. Nearly every shark was extremely impressed with the young founder's incredible pitch, Ellyette then revealed that she was seeking $500k for a stake of 5% in her company. She then expressed that her biggest pain point was her relationship with the manufacturer.
She then began listing out the impressive sales figure of her subscription service. The lifetime sales of BootayBag was an impressive $15 million! Ellyette started the company in 2016, with a loan of $300.The company reportedly made $3 million in sales, but only pocketed 5% as net profit. The sharks were instantly taken aback when they heard that she was only making a measly 5% profit. Guest shark Kendra Scott comes forward to help Ellyette and proposes a deal of investing $500K for a 10% stake in the company. Kendra defends her deal by pointing out how she too began her business with $500 from her bedroom, and today she's one of the 20 female entrepreneurs who founded the billion-dollar business. Kendra tells that she would love to help and direct Ellyette in the same direction.
Barbara Corcorantoo jumps at the opportunity and offers a deal of $500K but for 20% stake. Barb tries to sway Ellyette into taking up her deal by sharing that she has experience of working in the lingerie business and can resolve Ellyette's manufacturing issues by outsourcing it to the Asian market, and also enhance her sales channel. Not wanting to be left behind, Kendra offers to team up with Barb, and both of them offer a deal of $500K for 20%. Mr. Wonderful aka Kevin O'Leary offers $500 K for 15% and tries his luck at getting the deal.
But Ellyette wasn't comfortable with the idea of giving up such a huge stake of her business, so when she expresses it, Kendra immediately redacts her joint offer with Barb and goes back to her initial offer of $500K for 5%. Barb for shocked to see Kendra ditch her, and declares that she likes Kendra a little less. But the billionaire jewelry designer didn't seem to care or mind, as she was determined to get the deal. Luckily, Ellyette accepts Kendra's deal!
Fans too were thrilled with the deal, and hoped that Kendra would be able to guide BootayBag in the right direction. Former guest shark Daniel Lubetzky tweeted, "The entrepreneur of @BootayBag seems great - just needs some mentoring to reduce Costs of Goods and drive profitability. Hope our friend @KendraScott does a deal with her! #SharkTank." A fan wrote, "Congratulations, @BootayBag, on getting the deal with @KendraScott #SharkTank." Another fan shared, "Kendra just fed Barbara to the sharks. #SharkTank."
'Shark Tank' Season 12 airs every Friday at 8/7c only on ABC.