Nasty Gal Confirms Sale to British E-Tailer Boohoo
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, England-based Boohoo put in a stalking horse bid for Nasty Gal 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.
Total Retail's Take: The rise and fall of Nasty Gal was quick. The women's apparel retailer saw explosive success upon its debut in 2008, but stagnating sales and increased debt forced Nasty Gal to file for bankruptcy protection late last year. Like many others in the fast-fashion space, including American Apparel, increased competition, particularly online, led to struggles. Nasty Gal is in the process of shutting down operations. It will be interesting to see what Boohoo will do with the brand.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.