Viewers of Shark Tank probably remember the husband and wife proprietors of The Red Dress Boutique, who appeared on the program last October. They sought an investment for their successful online clothing business. Robert Herjavec and Mark Cuban gave them handshakes on air, agreeing to invest a total of $1.2 million for 20 percent of the company.
On Friday’s Beyond the Tank, viewers get an update on how that deal turned out. It was reported in The Atlanta Journal-Constitution last fall that Herjavec pulled out of the deal. Cuban invested alone at a reduced valuation: $600,000 for 15 percent. The Beyond the Tank segment is expected to show Cuban and Red Dress owners Diana and Josh Harbour disagreeing about some aspects of the business.
[UPDATE: On Friday’s episode of Beyond the Tank Mark Cuban said he owns 10 percent of The Red Dress Boutique and the Harbours own 90 percent.]
Diana Harbour told the AJC that they communicate frequently with Cuban and the disagreements don’t bother her much.
“We butt heads on some things. But that is normal with any company that takes on investors.
“He is always very magnanimous. He says, ‘It is your company. It is your final decision.’”
The AJC profiled Harbour in 2013 before the Shark Tank appearance. At that time The Red Dress Boutique had $8 million in annual sales and employed about 40 people. Although they started with a brick-and-mortar business, their enterprise grew exponentially when they built a website. Their savvy use of social media was an important factor.
“Scarcity breeds demand. I’ll order limited quantity. Girls want to know a hundred other girls don’t have what they have on.
“I get on social media and I hammer it. I was taking photos of the models in the fitting room in the clothes and uploading them immediately into Facebook so girls could see live time what just came in. It started a bit of frenzy.”
This week’s AJC article reported that online sales are now 90 percent of Red Dress Boutique sales. The Harbours clearly impressed the sharks during their original pitch.
Beyond the Tank has only aired one episode but it has already been renewed for another season on ABC. TV Series Finale reported that there are actually 10 completed episodes of Beyond the Tank, although only three are scheduled to air this season.
There was talk about Beyond the Tank for many months before it was eventually confirmed by ABC this past January. At that time, Entertainment Weekly described it as a series of 10 one-hour episodes.
Beyond the Tank airs next Friday, May 15 for its last episode of the season. Shark Tank and Beyond the Tank air on ABC.