Posted on January 3, 2017 by staff

Boohoo to buy US fashion retailer Nasty Gal


Online fashion retailer is expected to buy US retailer Nasty Gal for £16.1m following its collapse into bankruptcy.

After founder Sophie Amoruso left the business, the LA-based firm said it was no longer able to pay back its creditors, citing more than $20million (£15.9m) in unsecured claims.

Boohoo, which is headquartered in Manchester, has reportedly filed a certificate of incorporation with Companies House to purchase Nasty Gal’s intellectual property and nearly $10million (£7.9m) in inventory.

Mahmud Kamani and Carol Kane, joint chief executives of Boohoo, said: “Should we be successful in acquiring Nasty Gal it would represent a fantastic opportunity to add such a well-established, global brand to the Boohoo family.

“Following our recent acquisition of we believe this would represent an ideal next step in inspiring an ever-growing range of young customers internationally.”

According to Business of Fashion, the UK company tabled what is known as a “stalking horse” offer – designed to ensure Nasty Gal receives as much as possible for its assets.

Since its birth in 2006, Nasty Gal has raised more than $65m (£51.8m) in funding, and there are a number of other potential buyers – but it is believed Boohoo is preferred by the LA firm.