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Published
Nov 30, 2016
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Boohoo.com reportedly bidding for failed Nasty Gal

Published
Nov 30, 2016

Mass-market young fashion retailer Boohoo.com could be hoping to acquire the assets and brand of US peer Nasty Gal following the latter’s bankruptcy filing this month.

Could Boohoo.com buy failed Nasty Gal's assets?


Boohoo’s share price continued on an upward curve early Wednesday as the news broke, although neither Boohoo nor Nasty Gal have commented.

Reports said Boohoo last week filed a certificate of incorporation of a private limited company for Nasty Gal at Britain’s Companies House.

The pair are a good fit, with a similar youthfully sexy style profile and although Nasty Gal’s prices are a little higher on average than Boohoo’s, this could change if the company does succeed in acquiring the brand.

However, there could be rivals for the prize with a number of US retailers and brands also likely to throw their hats into the ring.

While Chapter 11 protection often sees companies reorganising in order to come back stronger, it can also see them preparing to sell their assets and if the reports are correct, this is what Nasty Gal appears to be doing.

Nasty Gal, founded by Sophia Amoruso in 2006, filed for Chapter 11 bankruptcy protection this month with Amoruso, who had distanced herself from the firm in recent periods, resigning as executive chairman at the same time.

Manchester-based Boohoo is one of the most successful of the new breed of pureplay e-tailers and has seen sales and profits soaring in recent periods with pre-tax profits up 129% in its most recent half-year on the back of sales up 40%.

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