Nasty Gal gets $20-million offer from British retailer Boohoo.com
Los Angeles clothier Nasty Gal, which filed for bankruptcy protection last month, said it has received a $20-million bid from British online retailer Boohoo.com for its intellectual property.
In a statement Wednesday, Nasty Gal said it is seeking permission from the U.S. Bankruptcy Court’s Central District of California to hold an auction of its assets in early February. Boohoo.com is the stalking horse bidder, one that can encourage competitive bidding by setting the opening price in an auction.
Joe Scirocco, president and chief restructuring officer at Nasty Gal, said in the statement that “this path will generate the highest value for the company and ensure the continued success of the Nasty Gal brand.”
The provocative retailer got its start in 2006 when founder Sophia Amoruso began selling vintage clothes on EBay. It grew into an e-commerce destination for trendy, edgy fashions for women, with the company eventually adding two brick-and-mortar stores in Los Angeles.
As Nasty Gal expanded, Amoruso’s own star rose. She hobnobbed with celebrities and penned two books — “#Girlboss,” which delved into the founding of Nasty Gal and her business philosophy, and “Nasty Galaxy,” a compilation of photos, essays and illustrations.
Last month, Nasty Gal said it was restructuring while looking for partnerships with other brands. Chief Executive Sheree Waterson said filing for Chapter 11 would help the company address “immediate liquidity issues” and fix “structural issues” such as high occupancy costs.
At the time of its filing, Nasty Gal estimated both its assets and its liabilities at $10 million to $50 million.
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