ReTold Recycling Shark Tank Update – Net Worth, Pitch & Deal

The biggest struggle of the textile industry is the massive 11.3 million tons of waste that ends up in the trash. That number is likely to cross 7% next year, and it’s a massive issue if not dealt with. Our entrepreneurs, Amelia and Alan, came up with an innovative solution to tackle this problem. They introduced ReTold Recycling. It was a modern textile recycling service that offered potential customers a convenient way to recycle their unwanted clothing.

The duo came on Shark Tank seeking $300,000 for a 15% ownership in the company. Their business had a lot of potential, but it had a couple of flaws that the Sharks didn’t like. The first one was a higher price point for the customers, and the other was a lack of a clear business model. But did the founders manage to strike a deal with the Sharks? Find out in our ReTold Recycling Shark Tank Update!

ReTold Recycling Net Worth

Amelia and Alan asked for a $300k investment in exchange for 15% equity in their company. This meant they valued their company at $2 million. They made a deal with Mark Cuban for $300k in exchange for 25% of their company. This new deal valued their company at $1.2 million. After the show aired, ReTold Recycling saw a significant increase in partnerships and sales. With an estimated 10% yearly growth rate (typical business growth), the current net worth of ReTold Recycling is about $1.5 million.

What Happened To Retold Recycling After Shark Tank?

Since appearing on Shark Tank, ReTold Recycling has continued to grow and make an impact. They’ve expanded their partnerships with fashion brands like Jenni Kayne, Verizon, Boody, and Vitamin A Swim. Overall, since appearing on Shark Tank, it has helped the company move forward with its mission at a much quicker rate.

Did Retold Recycling Get a Deal On Shark Tank?

Four of the Sharks didn’t invest in ReTold Recycling for different reasons. Kevin thought the service cost too much and wouldn’t make enough money worth his investment. Lori didn’t see a good business opportunity and doubted the business model. Robert and Emma were both worried about competition and didn’t think the company had a clear future and business model.

Mark Cuban was the only person who saw the potential in the business, and he offered 25% ownership in the company. The founders did counter at 22%, but Mark didn’t budge, and the founders accepted his initial offer of 25% for $300,000.

Shark(s) NameOffer and DemandCounterofferAccepted?
Kevin O’LearyOutN/AN/A
Mark Cuban$300,000 for 25% ownership of the company.$300,000 for 22% ownership of the company.Yes ($300,000 for 25% ownership of the company)
Robert HerjavecOutN/AN/A
Emma GredeOutN/AN/A
Lori GreinerOutN/AN/A

ReTold Recycling Shark Tank Update

retold recycling net worth

Founders Backstory

Amelia Trumble, the CEO and Co-Founder of ReTold Recycling had experience in digital marketing before starting ReTold Recycling. After university, she worked at a small e-commerce startup but then spent several years running e-commerce businesses for Estee Lauder. After doing some consulting work, she then co-founded ReTold Recycling with her colleagues from MAC cosmetics. The idea for Retold Recycling came from a conversation between Amelia and her co-founder. They discussed the need for an easy and sustainable way to recycle clothes and textiles.

Initial Pitch

The founders from California, Alan, and Amelia, appeared on Shark Tank to seek a $300,000 investment in exchange for 15% ownership of their company, ReTold Recycling. Alan began the presentation with some humor that amused Sharks Robert and Lori. He then discussed the massive 11.3 million tons worth of clothing waste problem in the USA. Amelia took over and explained that ReTold Recycling offers a convenient mail-in service for recycling clothes.

The company sends customers pre-paid bags. Customers fill these bags with up to 5 pounds of unwanted clothing items and ship them back. ReTold Recycling carefully sorts the received items before sending them to thrift stores and textile recyclers. This way, none of the customers’ clothing ends up in landfills.

Queries About The Product

what happened to retold recycling after shark tank

Kevin asked how the company acquires customers to purchase their bags. Amelia said they use Google Ads, and many people found their business by searching “clothing recycling near me.” Then, Mark questioned why he should pay ReTold when he could donate clothes to charities like Goodwill for free. Amelia responded that those charities don’t accept items like undergarments that can’t be resold.

Next, Kevin asked the founders about their sales numbers since launching. Alan shared that in 2020, their sales were $12,000. But the next year, their sales increased to $175,000. Lori then questioned their profits, and Alan replied their gross profit margin last year was 43%. Furthermore, Emma asked about their projected sales for the current year. Amelia responded, stating they estimated around $500,000 in sales for that year.

Mark then questioned from the $14.50 price point that they’re selling, what is the cost associated with the product. The founders said that their main cost is actually shipping itself. It currently costs them $12 for the shipping, which is 80% of their revenue. Mark suggested selling the recycling bags at convenience stores like 7-Eleven or dry cleaners. This could make it easier for customers to get the bags.

Shark’s Response and Final Deal

did retold recycling get a deal on shark tank

The first Shark to walk away was Kevin O’Leary. He saw three things that were wrong in the business:

  1. It had a high uncertainty
  2. Longer return times for his investment
  3. $300,000 asked was too much for the risk and waiting time for the return of his money.

Emma was the second shark who decided not to invest in the company. She thought $14.50 was too expensive. With people already paying a lot for things like gas and everyday living costs, she believed they wouldn’t want to spend that much more.

Lori gave a straightforward answer. She didn’t know how the company could be marketed in a way that would allow them to start generating cash. For those reasons, she didn’t invest in the company. Robert also didn’t invest. He had two solid reasons. One was the founders’ lack of a solid business plan. Secondly, he felt like the company was being funded by brands rather than being a for-profit organization. For those reasons, he didn’t invest.

Mark Cuban decided to invest in the company because he saw potential in its scalable branding program. The idea was that office buildings or companies could buy bags in bulk and handle the postage themselves. This provided a clear profit model by selling 2,000 bags at $2 each. Mark believed he could help grow the business and make it more profitable. The founders were eager for his help to raise awareness and improve their efficiency in the business. Because of this, Mark offered $300,000 for 25% of the company. However, the founders discussed momentarily and instead countered Mark for a 22% equity, which he rejected. However, the founders accepted his proposal and left the Shark Tank with Mark as their investor.

Product Availability

ReTold Recycling started off its business by focusing on solving the problem of 11.3 million tons of textile waste per year. They went on to Shark Tank with a single product that they were selling for $14.50. As of today, they now offer multiple products.

Some of the products they sell are:

  1. 10 Clothing Recycling Bags: The company offers 10 bags for a discounted price of $129.50.
  2. Quarterly Subscription: For people who don’t want to pay for a yearly subscription, they can pay a quarterly subscription of $24.95. It’ll include six bags, and they can pay for them in four installments.
  3. The Threesome: The company also offers three ReTold Recycle bags for $41.50 for medium-sized cleanups.
  4. Annual Subscription: They’re also offering six bags throughout the year for a fee of $94.
  5. The Solo Bag: The original bag that they brought to Shark Tank is still selling for the original price of $14.50.

You can access the ReTold Recycling bags on their official website. They also have a popup that shows 155 tons (as of this writing)  worth of textiles diverted away from landfills.

Conclusion

Alan and Amelia came on Shark Tank seeking 15% equity and a $300,000 investment from one of the Sharks. But, they accepted a 25% ownership and investment from the Dallas Mavericks owner, Mark Cuban. The original pitch of the product didn’t excite Mark at first, but when he refined the business model in front of the founders and saw that they shared his vision, he made an offer instantly. The vision of the founders, combined with Mark’s connections, made the business grow exponentially and profitably.

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