Collars & Co: From Shark Tank to a $21M Fashion Powerhouse

Collars & Co started as a simple dream, to create comfortable, high-quality dress shirts for young professionals who didn’t want to sacrifice style for comfort. But in the fiercely competitive world of men’s fashion, dreams can be easily crushed.

Yet, against all odds, Collars & Co appeared on Shark Tank and secured an investment from two sharks, including the iconic Mark Cuban.

This is their story, a journey filled with doubt, determination, and a defining moment that changed everything.

Facing the Giants: Collars & Co’s Struggle for Recognition

Collars & Co, like many startups, began with a problem that the founder, Justin Baer, himself faced. He knew the struggle of wanting to look polished without enduring the discomfort of traditional dress shirts.

“And my wife was like, I can’t believe these people are buying these shirts. I’m like, I always knew I had the problem,” Justin admitted, revealing the personal connection that drove him to create the company.

@collarsandcoclothing How I started a Men’s Clothing Brand During the Pandemic☝🏻 #entrepreneur #supportsmallbusiness #fyp #foryourpage ♬ BEE GEES VS 50 cent – Eric

However, entering the men’s wear market was like stepping into a lion’s den.

Giants like Polo dominated the market, making it tough for Collars & Co to gain recognition. As a new player, they struggled to compete with established brands.

Justin faced sleepless nights, worrying about scaling operations, managing inventory, and building the right team to propel the company forward.

The reality was harsh they needed more than just a great product. They needed capital, strategic mentorship, and a robust team to survive in this cutthroat industry.

Ambition Drives Collars & Co Toward a $50 Million Goal

Despite the challenges, the founders of Collars & Co were driven by an unshakable ambition. They weren’t just content with surviving, they wanted to thrive.

Their goal? To turn Collars & Co into a $50 million company.

They needed to ramp up production and enhance their marketing efforts. Building a strong team was also crucial to propel them to the top of the industry.

But more than that, they wanted to create a brand that people loved, built on innovation and customer care.

Justin’s passion for the product was clear: “As soon as you told them what your revenue was, they all went, whoa. Right? Like really out loud. They were prepared to just write you off. Another guy with another shirt company, who cares?”

This moment on Shark Tank was a turning point, showing just how much potential Collars & Co had​.

Competing Against Industry Titans: The Real Challenge

But the journey was anything but easy. Collars & Co was up against well-established brands with deep pockets, loyal customers, and the ability to out-market and out-price smaller competitors.

Justin knew they needed to differentiate themselves in a crowded market dominated by giants.

“We were competing against brands that had been around for decades, with budgets that we couldn’t even dream of,” he reflected.

“It was like David versus Goliath, and we knew we had to find a way to stand out”

A Bold Move: Pitching on Shark Tank

Determined to make their mark, the founders of Collars & Co decided to take a bold step, pitching their company on Shark Tank.

Justin knew it was a long shot, describing the decision as a whim. “I filled out the forms, and I didn’t make long answers because I was like, This is probably never going to happen,” he said.

But fate had other plans. After a year of waiting, they got the call.

This was their chance to secure the capital they desperately needed, along with mentorship and strategic connections from the sharks.

Appearing on Shark Tank was more than just a pitch, it was a chance to change the course of their company forever. Baer says he decided on a whim to take his idea to Shark Tank, but figured it was only a one-in-a-million chance that he’d get on the show.

Facing the Sharks

When Justin Baer walked into the Shark Tank, he knew this pitch could change everything for Collars & Co.

He confidently introduced the Dress Collar Polo, blending the polished look of a dress shirt with the comfort of a polo, eliminating the discomfort of layering. This innovative product redefined business casual, offering style without sacrifice.

“It’s a stretchy, comfortable golf shirt, except the top has a firm collar on it, giving you the exact same look as a dress shirt but with the comfort of a polo,” Justin explained.

The sharks were initially intrigued, especially when they learned that Collars & Co had already generated $5.4 million in sales within its first year. 

Sealing the Deal: A Turning Point for Collars & Co

However, not all the sharks were convinced. One shark quickly dismissed the offer, saying, “I hate that Midtown look, and I hate offers at 4% for $300,000. I’m out.”

But others saw potential, recognizing the rapid growth of Collars & Co. Kevin O’Leary, known for his tough negotiations, was intrigued by the company’s success.

“We’ve had other shirt companies on Shark Tank, but of all the ones in 14 years, you’ve had the fastest growth to $5 million. That’s a real business,” he noted, pressing Justin on his marketing strategy​.

As the negotiations heated up, Kevin made a bold move, offering $300,000 for 10% equity, far more than the 4% Justin initially proposed.

“Take the 10% offer,” Kevin urged, emphasizing the importance of mentorship in scaling the business.

But Justin, confident in his company’s value, resisted the higher equity stake, stating, “No way. Kevin, this is one of the fastest-growing DTC brands in the country. We’re growing at 28% a month.”

The tension peaked as Mark Cuban made a final, decisive offer: $300,000 in equity for 10%, plus a $700,000 line of credit. Mark’s vision of scaling the company to $80 million in sales was too compelling to ignore.

Justin, recognizing the immense opportunity, agreed to the deal, saying, “Let’s do it.”

Reflecting on the moment, he later shared, “Having Mark Cuban and Peter Jones as mentors means a ton. It frees me up to think bigger than I ever thought before. Hopefully, one day, I’ll be sitting next to them in one of the Shark chairs.”

This deal was a turning point, setting Collars & Co on the path to becoming a major player in men’s wear.

What Really Matters

As the sharks probed deeper, Justin experienced a moment of clarity. They realized that beyond comfort and design, brand differentiation, customer loyalty, and innovation were essential for success.

They realized that success in this competitive market would require more than just a great product. It would require a holistic approach to building and sustaining a brand.

A touching moment occurred when Justin revealed how his daughter played a key role in their marketing strategy.

“My seven-year-old daughter’s like, dad, you gotta do a TikTok. So we went in my closet… we put it out there, it was a Sunday, and the Shopify app started ringing,” he recalled.

This story went beyond marketing, it reflected the brand’s heart and soul. It highlighted the personal investment and family support driving their journey.

Collars & Co’s Rise in the Men’s Wear Industry

Securing a deal with Mark Cuban and another shark marked the beginning of a new chapter for Collars & Co. The capital infusion and mentorship transformed the company.

They expanded their product line, optimized their supply chain, and launched a targeted marketing campaign that boosted brand recognition. They also built a strong team of key players who drove the company’s growth.

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Reflecting on this transformative period, Justin said, “Some nights I’ll be up until 1:30 in the morning kind of going back and forth with Mark… It’s been a great deal. I’m happy we did it and I’m excited to see what comes next”​.

As of August 2024, Collars & Co. reached a net worth of $21 million, expanded its product line, and gained media coverage in major publications like GQ, Forbes, and Men’s Health.

Featured image: Shark Tank