By Rob Merlino
Highlights:
- Mark and Amber Schaub presented Rufflebutts and Ruggedbutts on Shark Tank, seeking $600,000 for 7% equity.
- Despite reaching a verbal deal with Lori Greiner for $600,000 at 9% equity, the agreement ultimately did not close.
- As of April 2024, the brands continue to thrive with $7 million in annual revenue.
Overview
| Category | Details |
|---|---|
| Name | Rufflebutts and Ruggedbutts |
| Founders | Mark and Amber Schaub |
| Industry | Children’s Clothing |
| Products | Girls’ and boys’ clothing, accessories, and footwear |
| Year Founded | 2007 (Rufflebutts), 2011 (Ruggedbutts) |
| Shark Tank Ask | $600,000 for 7% equity |
| Valuation | $8.57 million |
| Deal Secured | Verbal agreement with Lori Greiner: $600,000 for 9% equity (did not close) |
| Headquarters | Flower Mound, Texas (as of 2021) |
| Annual Revenue | $7 million (as of April 2024) |
| Retail Presence | Neiman Marcus, Nordstrom, Hallmark, and boutiques worldwide |
| Notable Rankings | #8 on Inc. 500 for retail businesses |
The Brands
Rufflebutts and Ruggedbutts are complementary children’s clothing lines created by Mark and Amber Schaub. Rufflebutts, launched in 2007, focuses on girls’ clothing inspired by the ruffled bloomers Amber wore as a child. In 2011, the couple introduced Ruggedbutts, a boys’ clothing line, shortly after the birth of their son. Together, these brands offer clothing, accessories, and footwear for kids, all emphasizing quality and style.
The businesses operate under distinct trademarks and separate websites but are unified by their playful “butts” branding. With national distribution in retailers like Neiman Marcus, Nordstrom, and Hallmark, as well as hundreds of boutiques worldwide, the Schaubs have built a significant presence in the Rufflebutts and Ruggedbutts children’s fashion industry.
Shark Tank Recap
In Shark Tank Season 5, Episode 506, the Schaubs entered the Tank seeking $600,000 for 7% equity, valuing their business at $8.57 million. They showcased impressive numbers, reporting $3.7 million in annual sales with no debt and a forecast of $5 million for the next year. The business ranked #8 on the Inc. 500 for retail businesses.
The presentation emphasized quality, cuteness, and the entrepreneurial spirit driving the Schaubs. Despite their strong pitch, the Sharks expressed concerns:
- Mr. Wonderful (Kevin O’Leary) criticized the large number of SKUs, calling it a “devil of inventory.”
- Mark Cuban admitted he wasn’t the right partner, saying he lacked knowledge of the product category.
- Robert Herjavec admired the couple but also bowed out, citing his unfamiliarity with the fashion industry.
The real battle came down to Lori Greiner and Barbara Corcoran:
- Barbara offered $300,000 in cash and a $300,000 credit line for 12% equity, valuing the business at its current sales figures.
- Lori countered with $600,000 for 10%, asking for a two-year repayment plan.
After negotiations, Lori revised her offer to $600,000 for 9%, and the Schaubs accepted. However, the deal ultimately fell through after filming.
Post-Shark Tank Update
Though the Shark Tank deal didn’t materialize, Rufflebutts and Ruggedbutts continued to grow. By 2021, the company had relocated its headquarters to Flower Mound, Texas. As of April 2024, the brands boast $7 million in annual revenue, demonstrating their resilience and appeal.
The Schaubs credit their success to their focus on quality, customer service, and a commitment to their vision. They remain a leading example of how entrepreneurs can leverage Shark Tank exposure to build thriving businesses, even without securing a final deal.
Conclusion
Rufflebutts and Ruggedbutts have proven that innovation, quality, and a strong brand identity can drive success in the competitive children’s clothing market. While they didn’t close a deal with Lori Greiner, the Schaubs have shown that perseverance and strategic growth can lead to long-term rewards. With $7 million in revenue and continued expansion, the future looks bright for this dynamic duo and their “super cute” brands.
