Basic Outfitters Shark Tank Update – Net Worth 2024

When it comes to essential wardrobe items, men don’t have many suitable options. In-store brands either provide overpriced products or compromise on quality. Michael Dweck and his wife, Laura Dweck, recognized this problem and came up with a solution.

They launched a New York-based online business called Basic Outfitters. It was designed to make shopping for men’s basics easier and more affordable. Their sales soared to remarkable figures within a short time. The couple was determined to clinch an investment from the business icons. 

Michael and Laura came on Shark Tank looking for $125,000 for a 10% stake in their company. The Sharks were hooked by the business idea until the couple made a startling revelation. Did the Sharks still pursue the opportunity? Find out in our Basic Outfitters Shark Tank Update!

Basic Outfitters Net Worth

Michael and Laura Dweck asked for a $125k investment in exchange for 10% equity in their company. This meant they valued their company at $1.25 million. They did not make a deal with any of the Sharks. After the show aired, Basic Outfitters saw an increase in sales and reached a revenue of $5 million. With the company shutting down in 2020, the current net worth of Basic Outfitters is $0.

Basic Outfitters Shark Tank Update

What Happened To The Basic Outfitters After Shark Tank?

Michael and Laura failed to close a deal on Shark Tank, but this appearance boosted their sales. The company’s revenue rose to $5 million, and an Amazon store was set up. They established brick-and-mortar “pop-up” shops. These accomplishments paved the way for a partnership with JetBlue. Their products were featured in JetBlue’s amenity kits. Michael and Laura’s efforts were recognized, and both were named in Forbes 30 under 30 in 2018. However, this success was short-lived. The couple exited the business in June 2019 without releasing any information about the new owners. The company hasn’t been functional since 2020.

Did Basic Outfitters Get A Deal On Shark Tank?

Mark Cuban was the first one to back off from the investment opportunity. He was impressed by the couple’s vision but regarded the company’s execution as impractical. Robert Herjavec and Daymond John aligned their decisions with Mark’s. They knew Michael and Laura didn’t have enough equity in the company to form a deal. Kevin O’Leary had a different perspective on this problem. He proposed $125,000 for a stake of 25% on the condition that it was sourced from other investors. Lori Greiner was inspired by Kevin’s approach and made the same offer as him. Michael and Laura attempted to negotiate the deal with Kevin and Lori, but they couldn’t reach a mutual agreement.

Shark(s) name	Offer & Demand	Counteroffer	Accepted?
Mark Cuban	Out	N/A	N/A
Robert Herjavec	Out	N/A	N/A
Daymond John	Out	N/A	N/A
Kevin O’Leary	$125,000 for a 25% stake, contingent on the equity coming from the other investors.	$125,000 for a 15% stake, contingent on the equity coming from the other investors.	No
Lori Greiner	#1: $125,000 for a 25% stake, contingent on the equity coming from the other investors. #2: $125,000 for a 20% stake, contingent on the equity coming from the other investors.	$125,000 for a 15% stake, contingent on the equity coming from the other investors.	No

Founders Backstory

The business idea for Basic Outfitters first occurred to Michael and Laura at the beginning of their married life. Laura challenged Michael to replace all the undergarments he hadn’t worn for about three months. Most items at the local departmental store were overpriced and beyond Michael’s budget. He was irritated to see the arrangement of different products into distinct sections. This sparked Michael’s quest for a quick and convenient method to refill his closet. The couple developed Basic Outfitters as an online all-in-one shop for men’s innerwear. Market research allowed them to find a reasonable price point for potential customers. They went on to invest $250,000 of their life savings to finance the company.

Initial Pitch 

Michael and Laura were eager to convince the Sharks to invest in their company. They were seeking $125,000 for a 10% equity of their company Basic Outfitters. It was an online destination for men to update their drawers with premium quality basics at affordable prices. The bundles included up to ten pairs of socks, three pairs of underwear, three undershirts, and a pair of jogger pants. These seventeen customizable items were made available for only $60. The founders handed out some drawers to the Sharks, who were amazed by the high quality of fabric used to make the products.

Queries About The Product

Daymond asked about the pricing strategies for the products. Laura explained that they had chosen $60 as their final price after conducting extensive market research. Michael cleared that an annual subscription wasn’t required to access the packs. Robert wanted to know about the production costs of the items. Laura said that each drawer cost them $25.90 on average. Michael revealed that the company had made $300,000 within 10 months of launch. Their yearly sales were estimated to be $500,000. These figures caught the Sharks’ attention. 

Kevin questioned about the inventory projected for the year. Laura stated that they owned $397,000 in inventory. Upon Mark’s inquiry, Michael mentioned that $750,000 of outside capital was raised for the company. They had secured a million-dollar valuation based on the concept alone. The promising discussion soon took a turn for the worse. Laura disclosed they had only 25% equity in the company. The majority of the business was sold to investors to get it started. This information deeply disappointed the Sharks.

Shark’s Responses and Final Deal

Michael and Laura struggled to negotiate and finalize a deal on Shark Tank. Mark, Robert, and Daymond criticized them for giving up 75% of their company to the investors. Quick rejections from the three Sharks lowered the couple’s morale. But Kevin’s unique outlook on the problem became a ray of hope for them. Kevin was willing to invest $125,000, provided that he could receive the 25% stake from other investors. This prompted Lori to put forward the same offer. Laura made a counteroffer on behalf of the investors, asking for the equity to be reduced to 15%.

Kevin realized that Laura and Michael didn’t have the authority to form a deal in the absence of their investors. He immediately withdrew his offer. Lori countered back and showed readiness to accept a 20% stake. The couple was eager to agree to the deal without consulting the investors. But then they requested for the equity to be lowered down further. Lori lost patience with their flawed tactics and quit the opportunity. Michael and Laura were still confident that they were on the right track with their business.

What Went Wrong With Basic Outfitters On Shark Tank?

The Sharks were interested in the business until a surprising fact was uncovered. Michael and Laura only possessed 25% of the company. Mark declared that their capital management system was the most problematic he had ever observed. Robert refused to recognize the couple as the owners of Basic Outfitters. Daymond praised the business concept but backed off for similar reasons. Kevin came to the rescue with his mutually beneficial offer but soon realized that the founders didn’t have the means to make an agreement. Michael and Laura tried to settle the deal with Lori. They were deluded that their investors would agree with the terms put forward by the Shark. Lori noticed their reluctance to close the deal and retracted her offer. The couple departed without any financial gain.

Product Availability

At their peak, Basic Outfitters had put forward the following products for men:

• Breathable and comfortable undergarments.
• Multiple options for socks.
• Casual jogger pants.
• Durable, everyday wear t-shirts.

In 2020, the company’s operations were stopped, and its products were listed as unavailable on Amazon. Their official website was redesigned in September 2022. It states that the shop is now powered by Shopify. As of August 2024, the website is protected by a password. The question of Basic Outfitters’ comeback remains unanswered.

Conclusion

Michael and Laura appeared on the Shark Tank looking for $125,000 for a 10% stake in their company. The Sharks recognized the potential of the business idea but found fault in its implementation. They had reservations about the future of Basic Outfitters. Kevin and Lori showed a willingness to invest $125,000 in the business, but the entrepreneurs couldn’t meet their requirements. The couple’s journey on Shark Tank ended on an unfortunate note. Basic Outfitters gained rapid success after their products were showcased on Shark Tank. But eventually, the Sharks’ concerns turned out to be valid. The company was shut down in 2020.