Skip to content Skip to navigation

High Flying Nasty Gal Files for Bankruptcy

Print Friendly and PDF

Nasty Gal, the online fashion retailer heralded as the future of retail, has filed for Chapter 11 bankruptcy protection after the board declared that the company is basically insolvent.

The company listed assets of $10 million to $50 million and liabilities in the same range, according to bankruptcy court documents.

Large unsecured creditors include real estate companies owed money on leases and clothing vendors.

Nasty Gal, founded by Sophia Amoruso, experienced rapid growth and became a darling of business journalists, who chronicled the company’s new approach to fashion retail.

In 2015, Forbes estimated Nasty Gal surpassed $300 million in revenues, tripling its sales in three years. As more documents become public in the bankruptcy case, we’ll be able to see just how accurate Forbes’ estimate was.

OUR SPONSORS

Nasty Gal also came in No. 1 in Internet Retailer’s listing of top 500 performing e-commerce companies last year, besting companies like Amazon.

Amoruso, who wrote a hit book called #GIRLBOSS, debuted on Fortune’s list of America’s Richest Self-Made Women with an estimated net worth of $280 million.

Actress Charlize Theron is even producing a Netflix comedy based on Amoruso’s life story, according to Forbes.

The company has raised money from venture capital. According to the Wall Street Journal, retail veteran Ron Johnson led a round of funding in 2015 that totaled $16 million. In 2012, Index Ventures put $40 million into the company.

The money in part was to fund a brick-and-mortar retail strategy. Nasty Gal currently has stores in Los Angeles on Melrose Avenue and the Santa Monica 3rd Street Promenade, two very expensive locations.

OUR SPONSORS

Nasty Gal CEO Sheree Watson, who joined Nasty Gal in 2015, told WWD that the bankruptcy filing will allow the company to address liquidity issues, restructure the balance sheet, and reduce occupancy costs.

Interestingly, the executive who signed the bankruptcy petition is familiar to the industry. Joe Scirocco, the former CFO of Quiksilver and TOMS, is listed as Nasty Gal president on the court documents reviewed by SES.

 

More news

Last updated: : 02/22/2017 - 18:02

Tigerlily is the second brand Billabong has sold recently as it moves to simplify its brand portfolio

Last updated: : 02/22/2017 - 15:09

Several interesting details emerged from a new Consumer Insights Report about the surf-inspired consumer market

Last updated: : 02/21/2017 - 09:16

The retailer also outlined plans for improving business in the future on an earnings conference call this morning

Last updated: : 02/20/2017 - 13:14

Tour CEO Tristan Boxford on the evolving business of pro SUP-surf and racing Tour

Last updated: : 02/17/2017 - 08:43

What tough market? Details about how Vans performed around the globe and overtook The North Face to become VF's largest brand.

Last updated: : 02/16/2017 - 16:35

The goal is to drive demand through better content creation, athlete marketing and digital activation

Last updated: : 02/16/2017 - 09:23

Michigan-based Moosejaw carries a wide range of outdoor brands such as Patagonia, The North Face, Arc’teryx and Marmot in addition to industry brands like Burton, Roxy and Olukai

Last updated: : 02/16/2017 - 09:21

The former online retail darling Nasty Gal is winding down business and selling inventory and assets.

Last updated: : 02/16/2017 - 09:24

SportChek is a high-volume industry account in Canada.

Last updated: : 02/15/2017 - 16:55

How Signal created a new way of selling hard goods on demand, direct from factory to consumer, to a loyal community of monthly subscribers