Nasty Gal’s lifeline may be extended with the help of another major fashion company.
U.K.-based Boohoo.com placed a $20 million bid for the bankrupt e-tailer’s intellectual property on Wednesday, according to the company. The sale would possibly expand Boohoo’s international market presence, especially among millennial shoppers in the U.S.
Boohoo in a statement Wednesday said Nasty Gal is, “A bold and distinctive brand for fashion-forward, free-thinking young women which the Board believes would complement Boohoo’s own inclusive and inspirational brand.”
Founded in 2006 by Sophia Amoruso, Nasty Gal today remains one of the most popular apparel brands for millennial shoppers. Known for its trendy pieces, Nasty Gal heightens consumers’ wardrobes with evening dresses and one-piece swimsuits.
On Nov. 10, Nasty Gal filed for Chapter 11 bankruptcy in Los Angeles, in order to restructure its balance sheet and business. In its restructuring process, Nasty Gal planned to explore strategic partnerships with other e-commerce brands and also improve its financial prosperity. Myriad internal issues, including layoffs and employee lawsuits, contributed to Nasty Gal’s recent financial troubles.
In November, Boohoo also submitted a bid for Nasty Gal’s U.K. business, after it filed a certificate of incorporation of a private limited company for Nasty Gal Limited with the Company House.
Bidding procedures for Nasty Gal will be approved by the U.S. Bankruptcy Court for the Central District of California on January 5, 2017. Nasty Gal projects that its auction process and sale will conclude by the end of February.