Nasty Gal’s label – and L.A. presence – will live on after the bankrupt company’s sale to British online retailer Boohoo.com was finalized last week.
The brand will still offer clothes, shoes, and accessories under its own label supported by a team of local employees, according to a company press release. It was consolidated into Boohoo on March 1.
A U.S. Bankruptcy Court judge approved Boohoo’s purchase of Nasty Gal’s intellectual property and customer databases for $20 million on Feb. 8. Nasty Gal will join Boohoo’s portfolio of brands, which includes Boohoo.com and PrettyLittleThing.com.
“We are thrilled to have Nasty Gal as a part of our family, and are excited by the opportunity to expand the company into international markets,” Carol Kane, Boohoo’s joint chief executive and interim chief executive of Nasty Gal, said in the press release.
The acquisition gives Boohoo a stronger presence in the United States from which to sell the clothing, shoes, and accessories it markets to 16- to 24-year-old customers. The company’s strongest sales are in the United Kingdom, United States, Ireland and Australia.
Founded in 2006 by Sophia Amoruso to sell vintage clothes on eBay, Nasty Gal saw several years of explosive online sales and revenue growth as it became a hip brand popular with millennials.
By 2011, the company had generated $28 million in revenue and had 100 employees. That year, it moved its headquarters downtown to be closer to vendors. By 2012, it reported $100 million in sales.
But Amoruso, 32, stepped down as chief executive in 2015 as international sales dropped off and the company took on debt, leading it to file for Chapter 11 bankruptcy protection in November.
“Since its inception, Nasty Gal grew rapidly,” the company said in its bankruptcy filing. “Nasty Gal experienced difficulties, however, in managing its business to keep pace with this incredible growth, including adjusting its product mix and merchandise offerings for a booming customer base and developing internal systems to manage and control the business.”
Boohoo put in a stalking-horse bid for the company in December, and with no other qualified offers on the table, the court approved the deal last month.
Nasty Gal was expected to close its two L.A. retail stores by the end of last month and said it would close its Kentucky fulfillment facility by April 10.
Amoruso, meanwhile, has moved on to capitalize on the image she built as a female entrepreneur. Her bestselling 2014 book, “#Girlboss,” is being made into a Netflix show with a planned release this year, and she formed a new company, Girlboss Media.
– Kat Speed
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