Proving there’s strength in a brand—especially those that connect with the covetable youth demographic—the Nasty Gal and American Apparel brands prove their value in bankruptcy sales.
Today Boohoo.com plc announced that the court has approved its purchase of Nasty Gal, and the transaction is expected to be completed on Feb. 28.
Following Nasty Gal’s bankruptcy, Boohoo.com was the sole suitor to step up, offering a $20 million bid for the company’s intellectual property and customer database.
“We are delighted to have been successful in our bid to acquire Nasty Gal. It represents an exciting opportunity to accelerate our international offering and inspire an ever-growing range of young customers in the US and around the world.” said Mahmud Kamani and Carol Kane, joint CEOs.
The deal will extend U.K.-based Boohoo’s reach into the U.S., helping the e-commerce company tap into a young, fashionable crowd similar to the 16-to-24 year olds that shop it’s flagship site as well as LittlePrettyThing.com, which it acquired last month with a 66 percent stake in its parent company, Three Clothing Company Ltd.
Gildan Activewear Inc has completed the acquisition of the American Apparel brand and certain assets.
The bankruptcy court gave Gildan the go-ahead to acquire the company on January 10th. The company’s $88 million bid reportedly beat out others, including Amazon and Forever 21. Montreal-based Gildan manufacturers family basics under brands like Gold Toe, Silks and Peds. Gildan owns and operates manufacturing facilities in Central America, the Caribbean Basin, North America and Bangladesh.
This marks the conclusion of a storied past for American Apparel and it’s founder Dov Charney. Known as a go-to for fast, fashionable basics and a lightening rod for its controversial ads, the company was founded in 1989.