What was the biggest bust on Shark Tank? Breathometer is widely considered the biggest bust in Shark Tank history. The $1 million deal involving all five Sharks collapsed under a federal investigation. Other biggest busts in Shark Tank history include ToyGaroo, Sweet Ballz, and UroClub, which collapsed quickly after airing due to poor execution, legal disputes, or simply a lack of market demand.

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Key takeaways

• Breathometer is widely considered one of the biggest Shark Tank failures in the history of the TV show.
• Breathometer raised $1 million from the Sharks but shut down after the Federal Trade Commission (FTC) found the device didn’t work reliably.
• Other notable Shark Tank failures include ToyGaroo, which filed for bankruptcy after failing to manage its rapid growth and high shipping costs and Sweet Ballz, which collapsed due to a bitter lawsuit and internal conflict between its founders.

What was the biggest bust on Shark Tank?

While Shark Tank has produced massive successes like Scrub Daddy and Bombas, it has also seen significant investments vanish, with some considered complete disasters due to failed products, legal troubles, or mismanagement. Below are some of the biggest busts where a deal was made but the business ultimately collapsed or significantly underperformed.

1. Breathometer

In Season 5 of Shark Tank, founder Charles Michael Yim pitched a portable, smartphone-connected breathalyser that plugged into a phone’s headphone jack to measure blood alcohol content (BAC). He originally asked for $250,000 in exchange for 10% equity.

All five Sharks were interested and invested a combined $1 million for 30% equity in this smartphone breathalyser. Despite early success, reaching $1 million in sales shortly after the episode and eventually hitting $5.1 million, the company collapsed due to product failure and poor management.

In 2017, the Federal Trade Commission investigated the company and charged it with making deceptive claims. Tests revealed the devices were frequently inaccurate. As part of the settlement, the company was ordered to refund all customers who purchased the devices. As reported by CNBC, Mark Cuban criticised the investment, calling it his worst execution in the history of Shark Tank.

2. Toygaroo

The ToyGaroo deal in Shark Tank Season 2 is often cited as one of the Shark Tank’s biggest losses. Founder Nikki Pope pitched ToyGaroo as the Netflix for toys, a subscription service where parents could rent high-end toys and swap them once their children grew bored.

She originally requested $100,000 for 10% equity. The final deal was $200,000 for 40% equity, split between Mark Cuban and Kevin O’Leary. The Sharks were aggressive because the model tapped into the booming subscription economy, and O’Leary had connections in the toy industry through Mattel.

Despite an immediate surge in demand after the episode aired, the company filed for Chapter 7 bankruptcy in April 2012, just one year after the investment. As documented by Medium, Kevin O’Leary later famously labelled Toygaroo as his worst deal because the concept was strong, but the execution failed.

3. Sweet Ballz

In Season 5, founders James McDonald and Cole Egger pitched Sweet Ballz, a company selling mass-produced cake balls similar to Starbucks’ cake pops but without sticks. They already had a large distribution deal with 7-Eleven. After a bidding war, they accepted $250,000 from Mark Cuban and Barbara Corcoran for 25% equity.

Just days before the episode aired in 2013, McDonald sued Egger, alleging he had started a competing company called “CakeBallz” and redirected Sweet Ballz customers and web traffic. A judge issued a temporary restraining order to prevent Egger from interfering with the business.

Due to the lawsuit and the strained relationship between the founders, the Sharks ultimately withdrew from the deal during due diligence. Despite the drama, Sweet Ballz survived. McDonald took full control, and while it never became a billion-dollar brand, the product is still sold in convenience stores and online.

4. The Body Jac

In Season 1, founder Jack Barringer, also known as Cactus Jack, pitched The Body Jac, a push-up assistance device that used resistance bands to help people with upper-body strength struggles. He asked for $180,000 for 20% equity.

The final deal was $180,000 for 50% equity, split between Barbara Corcoran and Kevin Harrington. Despite Barringer losing the 30 pounds as promised, the product failed to find a sustainable market. High manufacturing costs and low consumer interest caused the business to collapse.

Barbara Corcoran has since called it her worst business deal, claiming she lost her entire $90,000 investment. She often cites Cactus Jack as a fast-talking cowboy who was more interested in the spotlight than running a business. The Body Jac website went down in 2012, and the company officially went out of business by 2021.

5. Show No Towels

The ShowNo Towel deal in Season 3 is famous for being the only time a Shark, specifically Lori Greiner, wrote a check on the spot during the pitch. Founder Shelly Ehler pitched the ShowNo, a poncho-style towel that allowed children to change out of wet swimsuits in public with complete privacy.

She asked for $50,000 for 25% equity. Lori Greiner was impressed and even pulled out a chequebook on the spot, offering $50,000. After a brief bidding war with the other Sharks, the final deal was $75,000 for 25% equity. Despite the dramatic on-air deal, the partnership fell apart quickly. Ehler was never able to cash the check, as Greiner’s team later tried to renegotiate for up to 65% equity.

Limited distribution tests, like the one at Disney World water parks, never turned into long-term sales. The partnership ended under confidentiality agreements, and both sides shared conflicting accounts of the failure. ShowNo was officially closed in 2017, and Ehler has since left entrepreneurship to run a successful practice as a certified hypnotherapist.

6. Bubba Q’s Boneless Ribs

Bubba Q’s Boneless Ribs is one of the most successful products in Shark Tank history that turned into a total disaster due to a toxic legal breakdown between the founder and the Shark. In Season 5, former NFL player Al ‘Bubba’ Baker and his daughter Brittani Baker pitched a patented method for de-boning ribs so they could be eaten easily with a knife and fork.

Daymond John invested $300,000 for 30% equity. The product launched in 6,500 stores, including Sam’s Club and Costco, and by 2017, the company had generated over $16 million in sales. However, the partnership collapsed in 2023 when the Baker family accused John of trying to take over the business, cutting them out of profits, and forcing a bad deal with a manufacturer.

They claimed they received only about 4% of the $16 million. John sued the family for defamation and won a permanent restraining order, preventing further public criticism. The business is now stalled by the legal battle. While the product still exists, the partnership is over.

7. HyConn

In Season 2, firefighter Jeff Stroope pitched the HyConn, a quick-connect adapter for fire hydrants that clicked into place instantly, saving firefighters time. The product attracted major attention from the Sharks, and Mark Cuban offered $1.25 million to buy the entire company, including a three-year employment contract for Stroope and a 3% royalty on future sales.

The deal never closed, and both sides went public with conflicting claims. Cuban said Stroope tried to renegotiate for more money, while Stroope claimed Cuban’s team attempted to take away his licensing rights and royalties. Stroope also said the manufacturer Cuban suggested was too slow. Without Cuban’s investment and connections, HyConn struggled to grow.

The product still exists in a small market as the HyConn Home, but it never became the global firefighting standard the Sharks expected.

8. You Smell Soap

In Shark Tank Season 3, founder Megan Cummins pitched a luxury soap line with high-end packaging and a playful brand name. Both Mark Cuban and Robert Herjavec were interested. Cuban offered $55,000 for 20% equity, but Herjavec promised a higher valuation and help scaling the business. Cummins chose Herjavec, accepting $55,000 for 20% equity plus a $50,000 salary for herself.

The deal quickly became a problem because of poor communication. Cummins said Herjavec disappeared after filming, leaving her waiting for six months to finalise paperwork. She also missed other investment opportunities, including a potential partnership with Cuban. Without the promised funds, her business struggled to meet demand from the show.

Eventually, Cummins managed to keep the brand running on her own and sold it to a larger company in 2014. She has since moved on to other design ventures.

9. PinBlock

In Season 8, founder Vladislav Smolyanskyy pitched PinBlocks, a new type of construction toy. PinBlocks used bevelled pins to create flexible 3D structures that could bend and move. He asked for $100,000 for 20% equity. Kevin O’Leary offered $100,000 for 50% equity, and Smolyanskyy accepted, seeing potential for licensing with a major toy company.

The deal fell apart during due diligence. Smolyanskyy claimed O’Leary showed the product to a large toy corporation without him, after which O’Leary’s interest disappeared. Soon after, a similar product appeared on the market, leaving Smolyanskyy frustrated that his design had been exposed.

Without O’Leary’s investment or support, PinBlocks struggled with high manufacturing costs and competition. The company relied on Amazon and hobbyist sales for a few years but officially closed around 2021, with social media and the website going dark.

10. Sullivan Generator

The Sullivan Generator, pitched by Mark Sullivan in Shark Tank Season 3, is remembered as one of the show’s most bizarre proposals. Sullivan claimed his 100-foot-tall generator could harness the Coriolis Effec, the force of Earth’s rotation, to create a contained hurricane inside a vortex chamber. This process, he said, would generate electricity, produce fresh water, and even yield mineral byproducts like gold.

Sullivan asked for $1 million in exchange for 10% equity, insisting that just 200 of these machines could generate $96 billion worth of gold. No deal was made, and there has been no evidence that the Sullivan Generator was ever built or functional. Today, it stands as one of the most eccentric and delusional pitches in Shark Tank history.

What was the biggest failure on Shark Tank?

The biggest failure is widely considered to be Breathometer, because all five Sharks invested $1 million only for the Federal Trade Commission (FTC) to later order full refunds due to the product being inaccurate.

Did the Breathometer fail?

Breathometer failed because it was forced to shut down and refund millions to customers after the Federal Trade Commission (FTC) found its breathalyzers were dangerously inaccurate.

What Shark Tank rejections made it big?

The Bottom Line. Ring, Coffee Meets Bagel, and Chef Big Shake were rejected on Shark Tank but went on to achieve major success.

Breathometer is widely considered the biggest bust in Shark Tank history, resulting in a total loss of the $1 million invested by all five sharks. Other biggest busts in Shark Tank history include ToyGaroo, Sweet Ballz, and UroClu. These deals looked promising on TV but collapsed quickly after airing. Many failed due to poor execution, legal disputes, or simply lack of market demand.

Legit.ng recently published an article about the most successful Shark Tank products. Shark Tank has launched many businesses, but only a few have become huge successes. Some products caught the Sharks’ attention and turned into big brands, making millions in sales and becoming well-known around the world.

The most successful Shark Tank product of all time is Bombas, a sock and apparel company with over $2 billion in lifetime sales. Other top earners include Scrub Daddy, Cousins Maine Lobster, and Squatty Potty, each turning their pitches into massive businesses. The most successful Shark Tank products are generally measured by their total lifetime sales or their company valuation.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng