The fast-fashion e-commerce company made a $20 million bid for Nasty Gal’s intellectual property and customer database in December. Now that the date for additional bidders has passed, Boohoo is positioned to move forward with the transaction.
The matter is now in the hands of the U.S. Bankruptcy court, which will decide this week whether the acquisition can move forward. If the ruling goes their way, the sale could be wrapped up by the end of the month.
Boohoo has indicated it will finance the transaction through cash resources and a new bank debt facility.
Launched by Sophia Amoruso in 2006, Nasty Gal began as an eBay account as a way for Amoruso to express her vintage clothing obsession. Amoruso’s early success created a cult-like following among entrepreneurial-minded young women, propelled by her bestselling book Girl Boss. The Nasty Gal brand grew largely as a result of the company’s smart marketing through social media.
For Boohoo, the deal will extend the company’s reach to the U.S. in a demographic it knows well. The company reported revenue growth of 40 percent to 127.3 million pounds ($158.7 million) for the first half of the year, ending August 2016. It also recently acquired a 66 percent stake in PrettyLittleThing’s parent company in January, giving it more reach into 16 to 24 year old consumers.