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, the companies announced Monday.
Manchester-based Boohoo put in a stalking horse bid for the downtown company in December. An auction through the U.S. Bankruptcy Court had been scheduled for Feb. 7, but was cancelled, Boohoo said in a statement.
The deal is expected to be approved by the court on or after Wednesday and to be finalized Feb. 28.
Nasty Gal is winding down its 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 Nasty Gal’s own label.
The retailer saw explosive success in the last few years, consistently growing in sales and revenue. Just this year, Amoruso was named one of Forbes’ “60 Richest, Most Successful Self-Made Women in America.”
Despite net revenue of $85 million in the fiscal year that ended Jan. 31, 2015, the company struggled as international sales dropped off. It also took on debt, including $4 million in equity financing and a $15 million loan.
The company filed for bankruptcy protection in November.
Staff reporter Caroline Anderson covers restaurants, retail, and hospitality. She can be reached at canderson@labusinessjournal.com.
