Judge approves Boohoo's Nasty Gal offer
Boohoo's acquisition of Nasty Gal has been officially approved.
The British online retailer, based in Manchester, got the ball rolling on the sale in December (16), a month after Nasty Gal filed a petition for Chapter 11 bankruptcy protection at the Central District of California.
Boohoo made a $20 million (£16.3 million) offer to acquire a portion of the company's intellectual property (IP) and customer data, with the transaction going through a bidding process controlled by the U.S. Bankruptcy Court.
Judges have now approved the bid after a bankruptcy auction scheduled for Tuesday (07Feb17) was cancelled, due to the fact there were no other qualified bids. The deal is expected to close on 28 February (17).
Boohoo's co-chief executives Mahmud Kamani and Carol Kane have shared their joy over Wednesday's ruling in a joint statement.
"We are delighted to have been successful in our bid to acquire Nasty Gal. It represents an exciting opportunity to accelerate our international offering and inspire an ever-growing range of young customers in the U.S. and around the world," the duo said.
American label Nasty Gal, the brainchild of Sophia Amoruso, started life as an eBay store in 2006, selling vintage clothing. It quickly grew, and a year after starting the business Amoruso had moved the business to its own website away from the auction site. At one point Nasty Gal was valued at $200 million (£160 million).
The Nasty Gal acquisition comes hot on the heels of another business boost for Boohoo. The company also purchased a 66 per cent stake in Three Clothing Company Ltd. in January (17). Three Clothing Company Ltd. is the parent company of another British e-tailer, PrettyLittleThings.