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Published
Nov 10, 2016
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Nasty Gal reportedly filing for bankruptcy

Published
Nov 10, 2016

Online retailer Nasty Gal filed for Chapter 11 yesterday in California. The company made this announcement Thursday following rumors of their dire financial situation. The company’s bankruptcy filing will give Nasty Girl the opportunity to restructure. This is the company’s tenth year in operation.

Courtesy Nasty Gal


Nasty Gal started in 2006 by current Executive Chairwoman Sophie Amoruso as an Ebay-only vintage shop. The growing popularity led Amoruso to create a retail site soon after.

As of March 2015, the company has two brick-and-mortar locations in Los Angeles, California. Their retail stores have proved to be an incredible success - the store earns $1,800 in sales per square foot. Earlier this year the online retailer tapped a venture capitalist firm for $65 million in order to roll out more brick-and-mortar stores.

Nasty Gal has grown to be a $100 million empire. The retailer stocks edgy womenswear products at a low to mid-range price point. They stock a wide variety of brands, as well as their own private label. 

This news comes after Nasty Gal laid off 10% of their staff in February, a move Waterson called a 'strategic restructuring.'

Amoruso stepped down as CEO of the company in 2015 and was replaced by Sheree Waterson, a former Lululemon executive. Amoruso chose to focus on her personal projects, like her then-bestselling book and her upcoming Netflix show. Amoruso is rumored by various fashion outlets to be stepping away from the company entirely.

Sophia Amoruso made the list Forbes' Riches Self Made Women this year, with an estimated net worth of $280 million.

 

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