'Shark Tank' Welcomes Happy Feet Plush Slippers

The owner of Happy Feet plush slippers made his pitch to the Sharks in Tuesday's encore presentation of ABC's "Shark Tank."

Pat Yates sought $375,00 for 15% of his company, which was started in 1996 as a mall cart program that quickly expanded throughout the US, England, Canada and Spain.

"Our business philosophy is family oriented, which makes us different than many wholesalers and/or web vendors.

We are very close to many of our operators and their families, and we take a lot of pride in that" the company's website says.

The slippers come in a number of colors and patterns as well as certain licensed designs and in various animals.

Lori Grenier loved the slippers as soon as she put them on. "These are so comfortable," she said of the slippers which have a one-inch foam rubber bottom.

The company has $6.5 million in sales over 3 years and $2.65 million in the last 12 months -- most of which was sold online. That led to a $600,000 profit, which the Sharks thought was too low.

"There's nothing proprietary about this," said Kevin O'Leary.

"It feels to me as though you've peaked or may be on the way down," Barbara Corcoran said before dropping out.

Robert Herjavec followed quickly after.

Kevin O'Leary offered $375,000 with a $3 royalty until he he gets his money back for 5% equity and a royalty that drops to $1.50 after the capital has been returned.

Lori Grenier offered to go in with O'Leary as long as Yates agreed to make another attempt to go into retail.

Yates turned down the offer because of the royalty. He countered by offering 20% without the royalty. O'Leary and Grenier offered $375,000 for 30%, an offer which Herjavec matched. Yates countered with $375,00 for 25% which Herjavec accepted and Yates took.