HangEase Shark Tank Update – Net Worth 2024

Ryan Landis, a 19-year-old boy from Texas, arrived on Shark Tank with his third-grade project transformed into a developed product. Hangease was a collapsible hanger brand that made hanging clothes easier for messy people. 

The idea was great, and Ryan had sold the product to a leading retailer. However, he discontinued the product seven years ago but wanted to relaunch and market it again. Sharks did not like the seven-year gap.

Despite problems, Ryan eventually got the deal due to the value his product brought. How did he manage to win the investment? Find out in our Hangease Shark Tank update. 

HangEasy Net Worth

Ryan Landis asked for an $80,000 investment in exchange for 30% equity in his company, Hangease. This meant he valued his company at approximately $266,667. He made a deal with Mark Cuban and Lori Greiner for $80,000 in exchange for 30% of his company, contingent upon the validity of utility patents. This new deal kept the valuation at $266,667. However, the deal never closed due to unknown reasons, potentially related to patent issues and the founder’s interest in the business. Since then, Hangease has not been revived, and the company is currently closed. With no active operations, the current net worth of Hangease is $0.

HangEase Shark Tank Update

What Happened To HangEase After Shark Tank?

The deal between Hangease and, Mark Cuban & Lori Greiner never happened because of unknown reasons. While some claim that the utility patent contingency became a hurdle, many suspect that Ryan’s interest in the business idea made the Sharks change their minds.

The company is currently closed because the website is active, the social media handles are deactivated, and the product is delisted from all the retail outlets. It seems like Ryan Landis could not revive his business idea that had earned him money when he was a kid.

Did HangEase Get A Deal On Shark Tank?

Hangease did get a deal on Shark Tank. Mark Cuban and Lori Greiner’s trust in the idea made it possible for Ryan to strike a deal on the show. 

Robert Herjavec was brutally honest when he opted out, stating that the product lacked application because the idea was not sufficiently compelling.

Kevin O’Leary was not impressed by the pricing. He foresaw the inability of Hangease to survive. Barbara Corcoran also refrained from investing in Hangease because discontinued business ideas were usually non-profitable. She could not proceed with the lack of the founder’s interest to continue selling the product. 

Despite the uncertainties regarding patents and competition. Mark Cuban offered Ryan $80,000 for 30% of his company, subject to a contingency to confirm the validity of utility patents. 

Lori Greiner joined Mark Cuban in the deal to split the investment equally. Ryan agreed to the offer, and they struck a deal. 

Shark(s) name	Offer	Counteroffer	Accepted?
Lori Greiner and Mark Cuban	$80,000 for 30% of the company (contingent upon the validity of the utility patent)	N/A	Yes
Barbara Corcoran	Out	N/A	N/A
Kevin O’Leary	Out	N/A	N/A
Robert Herjavec	Out	N/A	N/A

Ryan Landis’ Backstory

Ryan Landis founded Hangease when he had to solve a day-to-day problem for his science project at the invention convention. He found the problem and created collapsible hangers that made cloth hanging a lot easier.

A classmate’s mother’s friend saw the project and was impressed by the potential value that it could bring. She was a sales broker, so she helped Ryan sign a contract with Walmart. The business did well but the marketing strategy was incorrect. It made Ryan close Hangease for seven long years to relaunch it on Shark Tank. 

Initial Pitch 

Ryan Landis arrived on Shark Tank from Plano, Texas, seeking $80,000 for a 30% stake in his company, Hangease. He started his pitch with an explanation of what a collapsible hanger could do. People could hang their clothes easily and get them off the rack in a flash. 

Collapsible hangers saved money because they rarely broke when compared to the traditional plastic hangers and never stretched the neck of a shirt. 

Ryan explained that Hangease was actually his third-grade science project at the invention convention show. They had to find a problem at their home and solve it. 

Ryan took the opportunity with both hands and created a product that drove the moms nuts. The design was simple, as a hinge was integrated at the center of the hanger. 

Hangease managed to strike a deal with a leading retailer when it was raw. However, Ryan could not give the product enough time to succeed. He relaunched the brand and presented the Sharks with samples to assess the value.

Queries About The Product 

Barbara Corcoran reconfirmed that Ryan had waited 10 years to bring the product back to the market. Ryan said that he did wait to bring the product back, but the delay was 7 years instead of 10. He also disclosed that the product was in boxes, but he tested it in his closets. 

Robert Herjavec asked about the big retailer that trusted a third-grade project made by a kid. Ryan claimed that it was Walmart that let him sell Hangease at their retail outlets. 

Lori Greiner wanted to know how Hangease performed in numbers. Ryan confirmed that he had sold 400,000 units. Mark Cuban laughed and asked how the company got inside Walmart. 

Ryan explained that a classmate’s mother’s friend helped him get involved with Walmart. She was a sales broker and had contacts with various retailers. She saw Ryan’s project at the invention convention and loved it instantly. 

Robert was amazed by what Ryan explained. However, he was interested in knowing the actual numbers that Hangease had achieved at Walmart. Ryan argued that his product helped Walmart make $200,000 while he earned $70,000 from it, from faulty marketing strategy led to discontinuance. 

Lori asked about the selling price per unit and the comparison with the traditional hangers. Ryan disclosed that he marketed a pack of four Hangease for $3.89, but the same pack of traditional hangers was available for $0.88. He also claimed that Hangease had a utility patent for the design and idea. 

Lori disagreed with Ryan and argued that she had seen similar products on the market. Mark recalled the metallic suitcase hangers that collapsed upon pressure application. However, Ryan said that he thoroughly researched the internet and found no hanger that collapsed when pressure was applied. 

Robert was unimpressed by Hangease and demanded the benefit that a retailer would enjoy from collapsible hangers. Ryan explained that collapsible hangers were value-adding for retailers selling clothes. They could help reduce the damage caused while hanging and unhanging. 

Kevin O’Leary disapproved of the idea of high-end retailers worrying about the damage caused while hanging clothes. Mark and Lori reassured Kevin that the problem did exist and was a common occurrence. 

Mark asked Ryan about the primary competitor that Hangease could have trouble handling. Ryan explained that no other product had direct competition with Hangease because it was the only collapsible hanger. However, he considered traditional plastic hangers as a competitor. 

Lori reasserted that she knew that competition was there. Companies were using Hangease’s patent idea but Ryan did not fringe them for copyrights. Mark also agreed that he saw value in the idea, but he could not digest the claim that no direct competition existed.

Sharks’ Response And Final Decision 

Robert Herjavec was not impressed by the whole idea. He claimed that the Hangease had no application. He opted out, saying that Mark Cuban was a slob for trusting such a product. 

Kevin O’Leary called out the product for being too expensive compared to the traditional ones. He did not see the company surviving with such an idea, so he opted out. 

Barbara Corcoran said that she had invested in some products that were discontinued by the founders but brought back to the market. She disclosed that she had suffered a loss on those investments because owners eventually lost interest in the ideas. She refrained from investing in Hangease. 

Mark Cuban told Ryan that there were too many uncertainties regarding the patent and competition. However, he agreed to invest $80,000 for 30% of Hangease, which was contingent upon the validity of utility patents. 

Mark invited Lori to join, as she could add more value to the team. Lori agreed to invest. Ryan accepted the offer, so they struck a deal on Shark Tank. 

Product Availability 

Collapsible hangers are certainly different from traditional substitutes like plastic hangers. Hangease made hanging clothes a lot easier with its simple design with a hinge in the center. 

Hangease sold its product on its website, social media accounts, and major retail outlets like Walmart. The product availability was never an issue, but the product is currently unavailable online. 

The website and social media handles are dysfunctioned, which tells that the company has closed its operations. Walmart has no Hangease on its rack, so the product is discontinued again. 

Hangease products could have been a real deal, subject to the validity of utility patents. However, it looks like the competition took a toll, and the product succumbed to the lack of sales and profitability. 

Conclusion

Hangease is an example of those products that make us believe that even a toddler or elementary school student can come up with a brilliant idea. The company did suffer a lot due to Ryan’s discontinuance and competitors copying the product. 

However, Ryan did manage to strike a deal on Shark Tank. It further signifies that Sharks like Lori Greiner and Mark Cuban believe in the originality and scalability of products. Other factors do not really matter to them, which is an encouraging sign for startups and entrepreneurs appearing on the show.