Apparel startup Rugged Seas adds minority investor, mulls next stage of growth
Courtesy / Rugged Seas
Taylor and Nikki Strout sold a 15% stake in Rugged Seas to Sawyer Island Consulting.
Rugged Seas, the Maine startup that turns used fishing bibs into tote bags and other products, has sold a minority stake in the company in order to expand sales and consider a brick-and-mortar storefront.
Portland-based investment and advisory firm Sawyer Island Consulting LLC took a 15% position in the company, according to Rugged Seas. Terms were not disclosed.
Rugged Seas sells its bags, backpacks and sweatshirts to about 40 wholesale accounts from Maine to Virginia, Florida and North Carolina. The company also sells to Hamilton Marine, as well as Vessel Services Inc. in Portland, and recently launched its products with Filson, a high-end outdoor apparel brand.
Until now, Rugged Seas was self-financed and has grown slowly from reinvested profits. Now, Taylor and Nikki Strout, the husband-and-wife owners from Cape Elizabeth, can use the new investment to hire workers, grow accounts and do some marketing.
“Taylor and I were very nervous about giving up any stake in the company. This is a passion project for us,” said Nikki Strout. “We met (Sawyer Island CEO) Keith Canning through a mutual connection and it just grew from there. Keith has so much energy and passion and it becomes like a family.”
Rugged Seas donates a portion of its revenue to the Maine Lobstermen’s Association and Maine Coast Fishermen’s Association, which was something that appealed to Sawyer Island.
In October, Sawyer Island began working with Rugged Seas, providing two interns to work with the Strouts and introducing the company to strategic partners.
“Keith was intrigued by Rugged Seas’ story and their passion for creating Maine-made products and giving back to working waterfront communities,” Sawyer Island said.
“Over the course of several meetings, our team was impressed by Nikki and Taylor’s ability to generate top line growth, strong local partnerships, and collaborative interest from national brands ... We recognized an opportunity to provide operational and strategic value to help Rugged Seas achieve their vision of market expansion outside of New England and into brick-and-mortar retail."
The Strouts began producing fishermen's sweatshirts, geared for specific fisheries, about a decade ago. But the business didn't really take off until 2020, on the eve of the pandemic. The couple has expanded into backpacks, totes and other products that are made of heavy canvas and used fishing bibs made from heavy-duty, waterproof polyester.
The business had grown as much as it could on its own, according to Nikki Strout.
“I think if it had been any other person or group, it would have been a hard decision. But this wasn’t hard. It felt right. They understand us,” she said.
Over the next few years, Rugged Seas hopes to decide whether a brick-and-mortar store makes sense and expand its bib-drop collection and presence on the West Coast.
“We want to take this model we have of collecting bibs and giving back to the communities we’re in and make it happen all over,” Nikki Strout said.
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Dear smart Maine investor readers, here's the play: Create a holding company in Maine: buy Sea Bags, Rugged Seas, Alaina Marie, Flowfold, Board of Maine, LiveMaine and roll them into one company. Save huge on admin overhead, open one big store of cool stuff for non-boomers downtown, and keep it going until LLBean decides their only hope to remain relevant is to acquire the holding company. Thank me later!
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