Nasty Gal’s bankrupt U.K. arm may be rescued by another major fast fashion tycoon.
According to the document, Boohoo would be granted the right to hold 75 percent or more of the company’s shares, possess 75 percent or more of the company’s voting rights and determine the appointment or removal of the company’s Board of Directors.
Established in 2006, Boohoo today is one of the world’s most popular online fashion marketplaces. Boohoo CEO Carol Kane created Boohoo to provide a trendy and affordable digital platform for international shoppers between the ages of 18 and 35. Today, Boohoo reaches over four million consumers and the company reported revue of just over $159 million for six months ended Aug. 31, 2016.
Boohoo’s recent bid follows Nasty Gal’s filing for Chapter 11 bankruptcy. On Nov. 10, Nasty Gal submitted voluntary petitions for relief in Los Angeles, Calif., to revise its balance sheet and business opportunities.
“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,” Nasty Gal CEO Sheree Waterson said in a statement. She added, “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 the market.”
Throughout its restructuring process, Nasty Gal is allegedly still searching for potential strategic partnerships. It is unclear which other apparel brands have expressed interest in the troubled retailer.
The Registrar of Companies for England and Wales is currently reviewing Boohoo’s acquisition submission and will provide a potential decision soon.