Bankrupt women’s clothing company Nasty Gal has received a $20 million offer from British online retailer Boohoo for the company’s intellectual property, the companies announced today.
Nasty Gal said that it would seek the U.S. Bankruptcy Court’s permission to go through with the sale on Jan. 5.
“We believe this path will generate the highest value for the company and ensure the continued success of the Nasty Gal brand that has served its consumers as a leading style destination over the last decade,” Joe Scirocco, Nasty Gal’s president and chief restructuring officer, said in the statement.
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Nasty Gal, that was founded by Sophia Amoruso in 2006, declared bankruptcy in November. It began looking for a buyer or investment partner in 2014, but had been unable to attract any until now, according to its bankruptcy filing.
Boohoo, also founded in 2006 as an e-commerce clothing business, registered a company by the name of “Nasty Gal Limited” in the United Kingdom late November, suggesting that it was considering acquiring the downtown L.A.-based company.
The publicly traded Manchester-based company said the acquisition would accelerate its international growth, especially in the United States, in a statement announcing its proposed acquisition to investors.
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Boohoo said the deal only included intellectual property assets and excluded operating costs.
Nasty Gal generated net revenue of $77.1 million and net loss of $21 million after taxes for the year ended Feb. 1, 2016, according to Boohoo.
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