The sale of Nasty Gal Inc. to British e-tailer Boohoo.com for $20 million is going forward after the bankrupt fast-fashion company failed to attract any other qualified bids.
Manchester-based Boohoo put in a stalking-horse bid for the downtown company in December, and an auction through the U.S. Bankruptcy Court had been scheduled for Feb. 7. The auction was canceled, however, after no other companies offered qualified bids, Boohoo said in a statement last week.
The bankruptcy court approved the deal Feb. 8 and it is expected to close by Feb. 28.
Nasty Gal is winding down operations over the next two to three months, the company said.
Boohoo has said that buying the intellectual property of Nasty Gal, which includes its large social media following and customer databases, will help it expand to the United States.
Sophia Amoruso founded Nasty Gal in 2008 from a business she built on eBay selling vintage clothes, later expanding to also sell contemporary items under the Nasty Gal label.
The retailer saw explosive success in the first few years, consistently growing in sales and revenue. The company struggled as international sales dropped off. It also took on debt, including $4 million in equity financing and a $15 million loan.
It filed for bankruptcy protection in November.
– Caroline Anderson
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