Sometimes, a company comes onto
Shark Tank Spergo Update
- Entrepreneur: Trey Brown and Sherell Peterson
- Business: Inspirational clothing line
- Ask: $300,000 for 10% equity
- Result: $300,000 for 20% equity
- Shark: Daymond John
Trey Brown and his mother Sherell Peterson started Spergo with $178 from Brown’s 12th birthday money. Now, at 15, the company has done over $1.8 million dollars in sales and has garnered attention from big-name celebrities like Sean “Diddy” Combs.
At 12, Trey sold 16 shirts to friends and family. The next day, he was hitting barbershops and meeting people around his hometown of Philadelphia, and managed to sell out of 40 shirts in short order. For the last three years, he’s been hitting the streets every Saturday with the goal of selling as many shirts as possible. Spergo, his brand, is an amalgamation of ‘sports’, ‘hero’, and ‘go-getter.’ It’s a feeling and an inspiration, as well as a way to keep his friends off the streets.
Each year, they’ve increased sales dramatically. Trey’s done $1.8 million in lifetime sales, starting with $40,000 in 2018. So far in 2021, they’ve done $938,000. They sell 30% e-commerce and 70% brick-and-mortar with their three locations. The first location was purchased thanks to a $25,000 grant from Sean “Diddy” Combs, who was inspired by Brown’s story.
All of this is amazing, and the sharks are inspired. Daymond John in particular can relate with Trey because he started off with his own clothing company. He asks what they want to do with the money, and they say they want new clothing designers, digital sales, a faster website, and more resources to sustain their growth.
However, Daymond doesn’t see why they want to scale so much so quickly. They are already doing so well. They explain that they are only producing for the current season, but they need to be a few seasons ahead if they want to have enough stock for increased sales.
Lori Greiner drops out because she doesn’t think she’s the best partner for them. Kevin O’Leary, too, as he isn’t a clothing guy. Robert Herjavec has invested in clothing brands before, but only online ones. He doesn’t know how to scale a brick-and-mortar business and the prospect is daunting, so he drops out.
This leaves Mark Cuban and Daymond. Mark appreciates the vision, but they are running at the goal too quickly for him. Still, he wants to help with their dreams. He offers $300,000 for 25% equity in the company.
Daymond matches the deal and offers more clothing expertise. Trey counteroffers for 20% equity instead, and Daymond agrees. Considering the expertise that Daymond John has in the field, this couldn’t have gone better for the entrepreneurs. But where is the company now? Find out in our Spergo update.
Since the company started, Spergo has been promoted everywhere. This includes the NBA’s Buy Black program, Fox Business, and Ellen. He’s received social media attention from popular celebrities including Sean “Diddy” Combs and Shaquille O’Neil. It’s safe to say that for this company, the only place to go is up. Our Spergo update research was unable to turn over any current numbers for the company, but we are confident Trey is well on his way to even more success.
If you want to check out some of Trey’s designs, be sure to visit the Spergo website.
Before you leave, be sure to check out more
For more on