2016 Newsmakers: Nasty Gal Files Chapter 11, Amoruso Steps Down
Bankruptcies by apparel and retail ventures have been at the forefront of the news this year.
Nasty Gal, the online clothing site based in downtown Los Angeles, was one of the latest to scamper to the courts looking for protection from creditors.
The site, founded in 2006 by Sophia Amoruso, filed for Chapter 11 bankruptcy protection on Nov. 9 in Los Angeles.
The result was that Amoruso resigned as executive chairwoman and Index Ventures partner Danny Rimer stepped down from the board of directors.
Amoruso, whose job as chief executive was taken over by Sheree Waterson last year, has been traveling around the world as a speaker and author. She told a group in Australia the day after the bankruptcy that the company explored many options but filing for Chapter 11 bankruptcy protection was the most responsible thing to do.
Waterson noted in a statement that bankruptcy protection will allow the company, which had $300 million in revenues last year, to restructure the balance sheet and correct structural issues, including reducing the company’s monthly rent at its fancy downtown headquarters. The company is looking for a buyer.
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, 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.