Rags to Raches Kids Clothing Update | Shark Tank Season 7

Rachel Nilsson started Rags to Raches when her family was in a financial bind. She decided to make clothes to sell, which prompted her on the road to creating a fully realized business from her creations. What will the sharks think of her pull-down rompers on Shark Tank Season 7? Find out in our Rags to Raches update. 

Shark Tank Rags to Raches Update

Rags to Raches Update

  • Entrepreneur: Rachel Nilsson
  • Business: Kid’s pull-down rompers
  • Ask: $200,000 for 10% equity
  • Result: $200,000 for 15% equity
  • Shark: Robert Herjavec

Rachel began her pitch by explaining how she came up with the idea to make and sell her Rags to Raches rompers. They pulled down and didn’t use snaps, making it easy and comfortable for kids. She used limited runs to drive sales. Parents loved them. 

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The company was extremely profitable, but Rachel said she was struggling under the weight of buying material for inventory. In the year before filming (her first year in business), she had $792,000 in sales. Nearly $300,000 of that was profit, and 88% of sales came from online sources. Each romper was made for up to $10, and they sold for up to $50. 

Mark Cuban remarked that she was one of the most profitable businesses they’d had on the show so far. However, her responses to many of the sharks’ questions were all over the place, so he goes out. Robert Herjavec liked Rachel and her ideas, so he offered $200,000 for 20% equity. 

Kevin O’Leary is interested as well. He thought that Rachel would fit in with his other businesses and offered $200,000 for 20% equity. Daymond John followed with an offer of his own – $200,000 for 20%, as long as she was comfortable with securing licensing for a sub-brand. 

Lori Greiner, however, said she would make the same offer as Daymond. As a result, she went out. Rachel asked Robert if he would consider 15% equity, and he asked if they would have a deal if he did. They both agree, and a deal is struck. Let’s check our Rags to Raches update to find out how the company is doing now. 

It’s all good news for Rachel! Research for our Rags to Raches update revealed that the deal with Robert was never finalized, but the company did great after the show aired. Sales increased by more than five times what they were before the show. She struggled to keep up with the demand, but still expanded her line to include new styles and designs.

As of 2022, she has deals with Disney and Nordstrom and about $4 million in annual sales. Rags to Raches products can also be purchased on the company website as well as on Amazon.

Curious about the other products featured in Season 7 Episode 19? You can find our company updates here.

For even more on companies and products, be sure to check out our Season 7 Products Page

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Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!