RuffleButts is a line of children’s clothing (bloomers with ruffles on the derriere) developed by husband and wife team Amber and Mark Schaub. They pitched their multi-million-dollar business on Shark Tank in 2013. They were seeking $600,000 in exchange for seven percent equity. Lori Greiner offered them $600k for 10% with a contingency: Rufflebutts would have to pay her back $300k in the first year, and the other $300k in the second year. Mark Cuban noted that Greiner’s offer was really a loan and was the worst Greiner had ever offered. Nonetheless, the Schaub agreed to the $600k loan in exchange for nine percent.
While some media outlets agreed with Cuban’s assessment of the deal/loan “being one of the worst”, the Schaubs said that it was worth the risk and they were pleased with their negotiation. “We can laugh all the way to the bank,” said Amber. “As a business, we’re very successful.” There’s proof of the company’s success in its expanded clothing line (denim, dancewear, swimsuits, dresses for weddings). They sell so much more than their signature bloomers! New episodes of Shark Tank air Sundays at 9pm on ABC.
