These Married Co-Founders Started a Business With a Name 'Nobody Could Pronounce' — Then Bootstrapped It From Their Garage to 8-Figure Revenue Co-founders Irene Chen and Matthew Grenby are well-versed in the art of the pivot.
By Amanda Breen Edited by Jessica Thomas
Key Takeaways
- Chen and Grenby started their business, iomoi, in 2001 as an e-stationery company — but soon had to abandon that idea.
- In the years since, they've made a series of strategic switch-ups, which have allowed them to grow luxury handbag and accessories brand Parker Thatch to eight-figure revenue.
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Irene Chen and Matthew Grenby, co-founders of functional luxury handbag and accessories brand Parker Thatch, are no strangers to well-timed pivots — having used them to build a business that's been profitable since day one and will hit eight figures in revenue this year.
Image Credit: Courtesy of Parker Thatch
Drawing inspiration from Chen's background in fashion (as director of product development at Donna Karan) and Grenby's in UX and design, the couple got their start in entrepreneurship with an e-stationery company called iomoi, which launched in 2001.
Although people liked the idea, it was ahead of its time, the co-founders say. The internet wasn't yet mainstream, and potential customers weren't willing to pay for a product they thought should be free. So iomoi began to offer physical products, expanding into home goods with a focus on customization.
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"I'm like, I want that on a tote bag."
Then Grenby figured out how to put their popular monogram designs onto 100% cotton — "and the wheels started turning," Chen says. "I'm like, I want that on a tote bag." The business was (and still is) entirely bootstrapped, so the couple had to find a creative, cost-effective way to develop the new product.
"When you don't have a huge sum of funding, it really tests your ability — how do I do this?" Chen says.
They did it by enlisting the help of Chen's dry cleaner in Danville, California. It was a family business; the woman who hemmed Chen's pants did excellent work and had a design degree, so they asked her to create a pattern, and she agreed. The bags were made of canvas with two strips of leather attached by rivets for handles. The Goyard stripe was popular at the time, so Chen and Grenby added a stripe design to their own bag.
It was 2009, and the timing was just right, the co-founders say: They "threw a bunch of Hail Marys out there," which landed iomoi's bags in holiday gift guides just in time for the seasonal shopping rush. Their "Mimi" bag was an instant hit, even catching Reese Witherspoon's eye, and is still a bestseller today.
Image Credit: Courtesy of Parker Thatch
"In order to scale and really become what we wanted to become, we needed to pivot."
Chen and Grenby continued to grow the brand over the next several years, moving their operation from their garage to a small office in Lafayette, California before they outgrew it and transitioned to a larger space in Orinda in 2015. The new office had a great window, which inspired the co-founders to open a showroom.
That same year, Chen and Grenby's friends and mentors Kate and Andy Spade, the husband-and-wife team behind fashion company Kate Spade New York, gave them some important advice. It was time to rename the company, which "nobody could remember or pronounce," Grenby recalls.
The co-founders often spent time in Napa with the Spades, and after some evening brainstorming sessions, playing around with different ideas, Kate mentioned how she'd always loved the name "Thatch." Chen and Grenby's daughter's name is Parker and their son's is Thatcher; "Parker Thatch" was a natural fit.
Customization was an integral part of the brand's handbags and accessories, but eventually, it became clear that it wasn't sustainable. "It's really difficult to scale that," Chen says. "We had a great bag and a great business, but in order to scale and really become what we wanted to become, we needed to pivot."
"That had been our bread and butter for all those years," Grenby adds, "and that's what had allowed us to grow as far as we had, but we sort of went as far as we could with that approach. There were just so many operational inefficiencies and bottlenecks that wouldn't let us [continue to expand]."
Image Credit: Courtesy of Parker Thatch
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The co-founders also wanted to introduce new colors and materials, including leather, to Parker Thatch's line.
Although moving away from the brand's original customizations was the right decision, it was still a difficult one. Chen likens the experience to jumping off a diving board and being unsure of where you'll land, and Grenby agrees, adding, "You know it's water, but how deep is it? Is there a rock? Is there a shark? You just have to take that leap of faith."
"I want things to be elegant and beautiful."
Taking that chance paid off — and helped Parker Thatch redefine itself as a brand that's "all about functional and elevated luxury."
"I find that's where we hit our stride, and that's who I am as a person," Chen says. "I'm not a fussy person, but I want to look good, and I want things to be elegant and beautiful. But I want to use it every day, and I want you to use your bag every day."
Parker Thatch let go of one version of customization to scale, but it's since embraced another. Customers can personalize their bags with interchangeable straps — like 100% cow hair in camo print with cognac leather trim or navy and white beading with suede sides — and charms: hearts dangling from acrylic tortoise chains, mother-of-pearl evil eyes, and so much more.
"That all stems from when we first started monogramming our bags," Chen explains. "Everyone has different personalities, and it should reflect on their bags. So I give you a bag that everyone could carry, but I believe that the straps [and charms] that you choose [are] a reflection of you."
"If it's not authentic, people sense that."
Parker Thatch continues to sell direct-to-consumer from its website, but it's also added a store to its Orinda showroom. Customers can make virtual or in-person appointments to shop and customize their look.
"We value connecting with our customer in that way," Grenby says, "and they value it too because they get to touch and feel the product."
Next year, the co-founders look forward to growing the brand via new channels of distribution and finding continued success with its designs, like the increasingly popular broken-in leather concept that's attracting buyers to the "Jack" tote (which quickly sold out and is now available for pre-order).
Chen and Grenby have learned a lot over their past 20-plus years in business, including how to stay competitive in a crowded market — and the difference between entrepreneurs seeking flash-in-the-pan success and those who want to build a company with longevity.
Image Credit: Courtesy of Parker Thatch
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Doing the latter requires a certain level of "grit," the co-founders say. "Sometimes people [think] grit means you have to hang on as tight as you can and just keep going and go hard," Chen explains. "But I've discovered it's more the longevity of it and the consistency of it. It's just sticking to it."
And, yes, Parker Thatch makes handbags, but its "true mission" is about giving customers a confidence boost, Chen says: "I want to make a handbag that when you put it on, you feel like you got a little swagger. So when you're not feeling great that day, [you put that bag on and are like], Okay, I can do this."
Finding that "why" helped supercharge the company — and serves as a solid defense against inevitable industry challenges, like competitors that produce knock-offs, Grenby says.
"That 'why' is not something that's not easily copyable," he explains. "If it's not authentic, people sense that, and they value authenticity."
