The company called itself the “Netflix of toys” and allowed customers to rent toys for each month. The business seemed like a good idea since kids get tired of their toys quickly, and so Mark Cuban and Kevin O’Leary invested $200,000 for 35%. However, the company filed for bankruptcy.
The company filed Chapter 7 on April 6, 2012, only a year after receiving the investment. The company posted on their website that they won’t be taking new customers due to “tremendous growth” before filing. The company officially closed in 2016.
Forbes asked the show’s investors what their worst deal was and both Cuban and O’Leary called out ToyGaroo. “Worst deal – Toygaroo. Great concept but they proved unable to execute,” said O’Leary.