Nasty Gal Gets Bid from British Online Fashion Site

Nasty Gal, which filed for Chapter 11 bankruptcy protection in California on Nov. 9, announced that has offered $20 million for Nasty Gal’s intellectual-property rights.

Nasty Gal said it will seek permission from the U.S. Bankruptcy Court to launch an auction process for the company with as the stalking horse. is a British online fashion retailer.

“We believe this path will generate the highest value for the company and ensure the continued success of the Nasty Gal brand that has served its consumers as a leading style destination over the last decade,” said Joe Scirocco, president and chief restructuring officer of Nasty Gal, an online purveyor of women’s clothing, shoes and accessories that is headquartered in downtown Los Angeles.

The auction is expected to take place in early February, with bidding procedures to be approved by the bankruptcy court on or about Jan. 5.

Nasty Gal was started in 2006 by Sophia Amoruso as an online clothing site with 3.5 million followers.

In court papers, Nasty Gal attorneys said the company owes United Parcel Service $576,950; Callahan Capital $289,332 for its lease on its downtown LA headquarters; Google Marketing Services $232,786; BNB Footwear $293,653,

Olivaeous, womenswear company, $318,816; Endless Rose, a clothing company, $256,714; and Cotton Candy LA, a clothing company in the Arts District, $182,222—with many more companies owed sizeable sums.

Earlier this year, some 19 people were laid off from Nasty Gal, and in 2014 another 20 tech and public-relations employees were let go, resulting in a lawsuit accusing the brand of illegally terminating pregnant employees.

While Nasty Gal started as an online venture, in recent years it opened stores on Melrose Avenue in Los Angeles and on the Third Street Promenade in Santa Monica, Calif.