British online fashion retailer makes bid for Nasty Gal
Fashion retailer Boohoo has made a bid to acquire Nasty Gal's intellectual property.
Nasty Gal, the Los Angeles-based online retailer founded by Sophia Amoruso in 2006, filed a petition for Chapter 11 bankruptcy protection at the Central District of California in November (16).
Now, bosses at the Manchester, England-based Boohoo have filed a petition to incorporate Nasty Gal in the U.K. and have entered a $20 million (£16.3 million) offer to acquire a portion of the company's intellectual property, according to a statement.
Such a bid makes Boohoo F I Limited, the company's subsidiary, the "stalking horse" bidder for the Nasty Gal brand and its customer databases in a bankruptcy auction scheduled for 5 January (17).
"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," Mahmud Kamani and Carol Kane, Boohoo's joint CEOs, stated. "Following our recent acquisition of PrettyLittleThing.com we believe this would represent an ideal next step in inspiring an ever-growing range of young customers internationally."
Boohoo announced earlier this month (Dec16), they were set to buy rival online fashion retailer PrettyLittleThing.com for $4.04 million (£3.3 million).
Accordingly, Boohoo executives feel the acquisition of Nasty Gal will be good for both business, as it can offer the latter access to its "product development, supply and distribution expertise," while "(accelerating) the Group's international growth, particularly in the U.S."
Amoruso started Nasty Gal as an eBay store, but rose quickly to success with her brand of vintage and quirky looks. But the firm has struggled in recent years, with the business experiencing difficulties in keeping pace with its own growth and more recently saw international sales slump.