Handbag Raincoat Update | Shark Tank Season 10

While visiting New York City, Morgan and Arley Sarner got caught in the rain and watched their expensive leather handbags get damaged, even after trying to cover them with coats and umbrellas. As a result, they created the Handbag Raincoat, a waterproof cover that protects any handbag without ruining the look. Will the sharks see the need for the Handbag Raincoat? Let’s find out in our Handbag Raincoat update and pitch recap.

If you’re short on time, here’s a quick overview of what happened to Handbag Raincoat after Shark Tank.

Morgan and Arley pitched their handbag accessory on Shark Tank Season 10, seeking $300,000 for 25% equity. Ultimately, they left without a deal.

In terms of a Handbag Raincoat update, the company experienced a short-term sales boost after appearing on Shark Tank, despite not securing a deal. Sadly, the company eventually shut down operations, and the founders moved on to other ventures.

Shark:	Result:
Mark Cuban	No deal
Lori Greiner	No offer
Sara Blakely	No offer
Kevin O’Leary	No offer
Barbara Corcoran	No offer

Shark Tank Handbag Raincoat Pitch

• Entrepreneurs: Morgan George and Arley Sarner
• Business: Handbag rain covers
• Ask:  $300,000 for 25% equity
• Result: No deal
• Sharks: None

Morgan and Arley entered Shark Tank holding hands, ready to pitch their company, Handbag Raincoat.

They introduced themselves and explained they had created a solution for women caught in unexpected rain.

Their product, the Handbag Raincoat, easily slips over a purse to protect it from water damage.

To start the presentation, the sisters acted out a skit. They portrayed a sunny shopping day that quickly turned into a rainstorm.

As the rain fell, they showed how handbags often get soaked and ruined. That’s when they introduced their simple solution— Handbag Raincoat.

At this point, Barbara Corcoran asked about manufacturing costs. Morgan and Arley explained that their landed cost was just $1.79 for all three product sizes.

They added that wholesale prices were $5, $7, and $9, while retail prices were $11, $15, and $20.

When asked about sales, the sisters shared that over the first three years of operation, Handbag Raincoat had generated more than $600,000 in total revenue.

Furthermore, they had broken into major retail stores. At the time of filming, Handbag Raincoat was available at Bed Bath & Beyond, The Container Store, and Nordstrom.

They also noted that after a feature on The View, they sold 10,000 units almost immediately.

Next, guest shark Sara Blakely asked about their investment in the business. Morgan said they raised over $300,000 from friends and family, which they used to buy materials and launch production.

Kevin O’Leary asked if they still owned most of the company. Arley responded that they retained 84% ownership. Kevin warned them about the risk of copycats in the market.

Arley explained that they had already taken steps to protect their product. They secured two design patents and spent $10,000 to shut down two companies attempting to copy their design.

The ladies emphasized they were seeking a shark’s help not only for capital but also for strategic growth.

They also wanted to expand their product line into backpack covers and shoe covers.

At this point, Mark Cuban spoke first. He said they missed growth opportunities by focusing on lawsuits instead of scaling the business. He went out.

Barbara followed. She said they made a major mistake by not investing enough in marketing to grow sales. She also went out.

Sara admitted she simply didn’t feel a strong personal connection to the product and bowed out.

Kevin criticized their valuation. He said it was inflated by ten times. He preferred investing in sales, not legal fights, and went out.

Lori Greiner said umbrellas already cover handbags. However, she didn’t think the product was game-changing. So, she also went out.

In the end, Morgan and Arley thanked the sharks and left without a deal.

Now, let’s take a closer look at how Morgan and Arley fared after their episode aired, in our full Handbag Raincoat update.

Shark Tank Handbag Raincoat Update

Our Handbag Raincoat update found that despite not getting a deal, sales surged briefly after the show.

Sadly, in December 2019, the business shut down, and the website and social media went inactive.

After their business closure, Arley became a Senior Manager at the Boomer Esiason Foundation.

Meanwhile, Morgan returned to fashion and now works at Rebecca Minkoff.

This is our final Handbag Raincoat update.

You can find the other company updates from Season 10 Episode 5 here:

• The Kombucha Shop Update
• The WISP Broom Update
• Rewardstock App Update

For even more on companies and products, be sure to stop by our Season 10 products page!