Sarah Oliver Handbags Net Worth Shark Tank Update

Ladies love bags. It accessorizes them and gives them a signature style to carry their valuables around too. Even though these bags are liked by every other girl a handmade one is more valuable and has a closer connection to our hearts.

Sarah Oliver, the owner and founder of Sarah Oliver Handbags, has come on the show with bags full of human efforts. Her bags are all handmade with the help of old age people, which she calls Purlettes +1. Purlettes is used for all old ladies working in her company while +1 is used for Hector, who is the only male bag knitter in the company.

The owner came on Shark Tank to request $250K for 20% of her company. She also introduced the Purlettes to the shark through a video introduction to highlight her wholesome business in front of them. Let’s hear what the sharks have to say regarding her business.

Sarah Oliver Handbags Net Worth Shark Tank Update

Sarah was looking for an investment of $250K in exchange for 20% equity in her company. At the time of the episode, she valued her company at $1.25 million. Sarah successfully secured a deal with Kevin, Lori, and Robert for an investment of $250K for 30% equity in the company. The investment adjusted the company’s net worth to around $833K. After the show aired, Sarah Oliver Handbags experienced a good boost in exposure. As per my rough estimate, the current net worth of Sarah Oliver Handbags in 2024 is $0, as the company closed in 2017 due to legal complications.

Shark(s) name	Offer & Demand	Counteroffer	Accepted?
Kevin O’Leary + Lori Greiner + Robert Herjavec	$250K for 20% equity	$250K for 30% equity	Yes
Mark Cuban	Out	N\A	N\A
Barbara Corcoran	Out	N\A	N\A

The Owner’s Backstory

Sarah was taught knitting by her mother and grandma at a very young age. She then in a holiday event knitted gifts for every family member and they all loved her sweet gesture. She then got orders from other relatives and decided to start her own business.

Moreover, he hired a staff to help her out but she chose to work with people of older age. She met her staff when she joined a retirement society for her kids. She became more comfortable with them and thought to work with them. This really increased her product quality due to their love and support. She calls her staff Purlettes +1, with +1 being the only male member in her company.

Initial Pitch

The owner came on the show to seek $250K for a 20% equity stake. She also showed the sharks her finely handmade bags by the Purlettes +. The bag also comes with a removable brooch so that a customer can change it or use the brooch as a pin for herself. Each bag also has a card with the name of the knitter to give them a shot out too.

Queries about the Product

Corcoran asked the first question about her company as a charity system or a real business. Sarah answered confidently that Sarah Oliver Handbags is definitely a business.

She also asked about the wage Sarah pays to the Purlettes +1 for each bag. The owner replied that she paid $17 for a single bag.

Lori then inquired about the cost of making one bag and its price. She answered that the resort bags are her bestsellers which cost her $47 to make and sell for $225.

Herjavec asked about her sales. Sarah highlighted that the company’s lifetime sales are around $1.9M. Last year, she made $360K.

Cuban asked about Sarah’s further needs and goals. She pointed out that she wants working capital as she has 90 store accounts across the country.

Kevin wanted to know the medium for her sales. The owner shared that although she has stores across the country she also sells her handbags online.

He also asked about the number of bags a Purlette can make in a day. Sarah affirmed that the Purlette can make an average of 3-4 bags a week.

Kevin also inquired about the number of Purlettes to work in the business. She highlighted that for the time being she works with two retirement companies and a total of 30 knitters. They can make around 4000 bags annually, amounting to $900K.

Shark’s Response and Final Decision

Lori was the first shark to praise her idea of involving older people in her business. She also pointed out that she would love to work with the other sharks on the business as it needs collective help from them. She offered $250K for 25% equity, as each shark on the set will get 5% in Sarah’s company.

Herjavec immediately agreed with Lori and decided to make a partnership with them. Unfortunately, Corcoran didn’t like the idea and decided to drop out of the deal.

Cuban followed Corcoran and backed out too, as the business was not fit for him. Herjavec then made the offer clear that he and Lori would love to offer $250K together for 25%.

Finally, Kevin joined the two sharks and offered $250K for 30% of her company. Sarah accepted the triple sharks’ offer.

Product’s Availability

Despite the brand’s rapid rise to fame—so much so that their website crashed after their appearance on Shark Tank—the company had to close its doors in 2017. The shutdown occurred due to legal complications. The U.S.

Department of Labor informed Sarah Oliver that her method of compensating employees, which was based on a per-item payment structure, violated labor laws. As a result, she was left with no choice but to cease operations after being told that her business model was considered unlawful. This ultimately forced the closure of the once-thriving handbag company.

Conclusion

The company won several hearts not only for making fashionable bags but also because of the Purlettes +1 team who handmade the bags. Despite getting an offer from three sharks at a time, the company didn’t make a mark on a wider level. Her violation of labor laws became the reason behind the company’s end.