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Home » What Went Wrong: Nasty Gal, Former Fashion World Darling, Is Now Bankrupt

What Went Wrong: Nasty Gal, Former Fashion World Darling, Is Now Bankrupt

March 1, 2017
Los Angeles Times

Founder and Chief Executive Sophia Amoruso was Nasty Gal's best model, embodying the Los Angeles company's edgy-and-feminine aesthetic and attracting flurries of laudatory coverage with her rags-to-riches story.

But now Amoruso is gone, and Nasty Gal is selling for $20m to British online retailer Boohoo.com. The transaction comes after a November filing for Chapter 11 bankruptcy protection.

Boohoo will acquire Nasty Gal’s intellectual property and says it plans to operate Nasty Gal as a standalone website. In a statement, it lauded Nasty Gal’s “extremely distinctive style” and “loyal customer base” — which will both complement Boohoo and expand “global opportunities for growth.”

So what went wrong at Nasty Gal?

Wasn't the company growing rapidly?

Nasty Gal enjoyed tremendous growth in its early years, but at a heavy cost.

Read Full Article

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