After Nasty Gal filed for bankruptcy back in November, the rumor mill began to run at full speed. This week it was announced that the ink on the paper is set to dry on this acquisition deal by the end of the month. Under the BooHoo umbrella, a spokesperson has confirmed Nasty Gal will remain as a standalone eCommerce site.
Commenting on Nasty Gal’s strength, Internet Retailer quoted BooHoo’s spokeswoman, who said, “Nasty Gal has developed an extremely distinctive style, which has become synonymous with the brand. Its loyal customer base and unique brand naturally complements the Boohoo offer, bringing something different to the customer, whilst creating increased global opportunities for growth.”
While Nasty Gal grew a reported 20 percent from $320 million in 2014 to $384 million in 2015, it wasn’t enough to keep the momentum going for the brand. By joining forces with BooHoo, Nasty Gal will have the opportunity to figure out its next best step rather than shuttering its doors for good.
Another retailer in a similar boat is The Limited, which filed for Chapter 11 bankruptcy this past month. Since then, the company has closed down its website and stores with its debt amassing in the $100 million to $500 million range.
Although this may seem like the end for the Limited, there may be hope with private equity firm, Sycamore Partners, eyeing the clothing retailer for a reported $25.75 million. Bids are being taken now for the company’s eCommerce site, social media accounts and customer list. All bids for the Limited will be reviewed within the next few weeks.