Nasty Gal Files for Bankruptcy

Nasty Gal might soon come to an end, as Sophia Amoruso’s fashion company is reportedly filing for bankruptcy. But how did it get there?

Nasty Gal Files for Bankruptcy

Started as a vintage e-Bay shop 10 years ago, Nasty Gal soon became one of the fashion industry’s fastest-growing e-commerce companies, with founder and #GirlBoss Sophia Amoruso, who at that time was only 22, becoming a sort of visionary institution (we highly recommend reading Amoruso’s bestselling autobiography, #GirlBoss, while waiting for its Netflix inspired series).

As reported by WWD, Nasty Gal has been undergoing very difficult times in the past few years, with the company “aggressively looking for capital and possibly a new owner”, as well as experiencing frequent rounds of job losses.

When asked about the decision to file for bankruptcy, Nasty Gal’s chief executive officer Sheree Waterson told WWD that “our decision to initiate a court-supervised restructuring will enable us to address our immediate liquidity issues, restructure our balance sheet and correct structural issues including reducing our high occupancy costs and restoring compliance with our debt covenants. We expect to maintain our high level of customer service and emerge stronger and even better able to deliver the product and experience that our customers expect and that we take pride in bringing to market.”

As reported by the tech news site Recode, which greatly covered the news regarding its business-related side, Amoruso (who already handed over her role of chief executive in 2015) is planning to resign from her position of executive chairwoman, as the company files for chapter 11 bankruptcy and restructures.

Funded by Index Ventures in 2012, Nasty Gal got funded by retail exec Ron Johnson too, who invested a grand total of $16 million in the company in 2015. That said, however, Nasty Gal’s decreasing sales exceeded the funds, putting both Nasty Gal and Sophia Amoroso in an unsure position.

In a recent press release, the company stated that Nasty Gal was now “exploring strategic partnerships with other strong brands and will continue to explore these options throughout the restructuring process,” and that it “expects to attract a new equity partner or sponsor to take the company forward with a healthy balance sheet.”

As if things weren’t tumultuous enough, Nasty Gal has been coming under fire throughout these past two years for accusations such as toxic and discriminating working environment, with more and more employees speaking up and accusing the company of being “a horrible place to work for pregnant women,” as reported by Buzzfeed in June 2015. The company did answer to such accusations stating they were nothing but “false, defamatory and taken completely out of context.”

Most recently the company was waded into politics after US candidate Donald Trump called Hilary Clinton “a nasty woman”, urging Amoruso to show her support selling “nasty woman” clothing pieces.

Is this the end of high fashion e-tailers as we know them?

Photo courtesy of Nasty Gal

Recent Posts

Laura Kim and Fernando Garcia Debut Oscar de la Renta Bridal Line for Spring 2018

Oscar de la Renta’s bridal spring 2018 collection was a well-rounded procession of wedding day options with a good range of designs to appeal to a varied number of brides for their big day. Some...

Elie Saab Bridal Spring 2018 Collection

The Elie Saab bridal spring 2018 collection was inspired by a garden where everything is in full bloom, but still managed to be soft, charming and striking. The designs featured the opulence we would expect...

Earth to Gucci, Earth to Gucci: WTF?

Gucci’s new campaign stars a bunch of…wait for it…aliens! Okay, just when you think you’ve seen it all, Gucci just released their new #Gucciandbeyond Autumn/Winter 2017 campaign this morning on IG. And it just happens...

Rihanna Is Dropping Fenty x Puma Jelly Slides and Mint Fur Slides

Rihanna is hitting it big with Puma month after month! The musician-turned designer is, in fact, dropping new Fenty x Puma jelly slides and mint fur slides the upcoming summer, and everyone is already obsessed...

Reem Acra’s Bridal Spring 2018 Collection Brings Breakfast at Tiffany’s Vibes

Bridal fashion is changing the way we look at brides forever, and Reem Acra just reinforced this concept with her brand new Reem Acra bridal spring 2018 collection. Like Christian Siriano with his spring 2018...