Nasty Gal Offices to Remain Open in Los Angeles

After being acquired by British-based online fashion retailer for $20 million, Nasty Gal is marching forward with its same website and smaller offices in Los Angeles as well as work spaces in New York, London and Manchester, England.

Nasty Gal will continue to offer its clothing, shoes and accessories geared toward women in their 20s and 30s under its own label with plans to design exclusive collections later this year, BooHoo executives said. But in early February, Nasty Gal laid off 98 people.

The online retailer planned to close its two Los Angeles–area stores soon and shutter its Kentucky distribution center by April 10.

“We are thrilled to have Nasty Gal as part of our family and are excited by the opportunity to expand the company into international markets,” said Carol Kane, the joint chief executive for the BooHoo Group and the interim CEO for Nasty Gal.

Nasty Gal, a pioneer fashion e-commerce site established in 2006 by Sophia Amoruso, was a hot commodity for years with venture capitalists jumping in to invest in the company.

Amoruso resigned in 2015 as chief executive, handing the job over to Sheree Waterson, the former president at Lululemon Athletica.

Recently, mounting expenses and decreasing revenues forced Nasty Gal in November to file for Chapter 11 bankruptcy protection. In the fiscal year ending Jan. 31, 2015, Nasty Gal had net revenue of $85 million but a mountain of debt.

In court papers, Nasty Gal attorneys said the company owed 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, a 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 sizable sums.