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Boohoo bought Nasty Gal for $20 million

16. March 2017
The American women’s clothing retailer Nasty Gal will continue to operate as a standalone site under Manchester-based online fashion retailer Boohoo.

 

Boohoo bought Nasty Gal for $20 million

Nasty Gal filed for chapter 11 bankruptcy protection in November hoping to “attract a new equity partner or sponsor” to help it move forward. After the consent of the judge to the acquisition of the rival label, the deal closes on 28th February 2017. It will not include the operations of Nasty Gal or the management of the two physical shops in Santa Monica and Los Angeles.

“Nasty Gal has developed an extremely distinctive style which has become synonymous with the brand,” a Boohoo spokesperson says. “Its loyal customer base and unique brand naturally complements the Boohoo offer, bringing something different to the customer, whilst creating increased global opportunities for growth.”

Nasty girl was founded as a vintage eBay shop by Sophia Amoruso in 2006 offering several brands and its own-label young fashion as well as vintage finds on an international level. Whereas Nasty Gal had an estimated average online order value of $200 in 2015, Boohoo’s amounted to $79. Nasty Gal could increase its online sales to an estimated $384 million in 2015 rising 20% in comparison to the previous year. However, the company made a net loss of $21 million on revenues of $77.1 million in the year ending 1 February including vintage clothing sales and third-party brands which are excluded from the deal. Boohoo’s sales reached 195.4 million pounds ($243 million) in the last fiscal year. It is already the second purchase of Boohoo closed in 2017 after the acquisition of Three Clothing Company, parent company of the low cost brand PrettyLittleThing for 3.3 million pounds ($4.1 million). This fast-growing fashion website addressing a young target group had been created by the children of Boohoo’s co-founder Mahmud Kamani.

 

 

Sources:

Internet Retailer

Modaes.es

The Guardian

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