Nasty Gal files for bankruptcy
It's not a great week for the #GirlBoss.
Nasty Gal, the online retailer founded by #GirlBoss author Sophia Amoruso, filed for bankruptcy on Wednesday. But the site won't be shutting down in the immediate future, according to a statement, which did not mention the state of the brand's brick-and-mortar stores.
“Our decision to initiate a court-supervised restructuring will enable us to address our immediate liquidity issues, restructure our balance sheet and correct structural issues including reducing our high occupancy costs and restoring compliance with our debt covenants,” Nasty Gal CEO Sheree Waterson said in a statement. “We expect to maintain our high level of customer service and emerge stronger and even better able to deliver the product and experience that our customers expect and that we take pride in bringing to market.”
You May Also Like
Nasty Gal was one of the first online retailers to succeed by capturing a distinct market segment. The site rode to popularity on a wave of crop tops and bodysuits, and most recently sold "Nasty Woman" shirts for Hillary Clinton supporters.
But where Nasty Gal was once unique, today it faces a slew of competition. The site has dozens of trend-focused competitors aiming at a similar demographic, from Missguided to Tobi.
Amoruso started Nasty Gal by selling vintage clothes on eBay and later developed a following of her own through her #GirlBoss brand. A Netflix series based on the book is in the works.
But the company was plagued in recent years by criticism of its employee practices. Nasty Gal had two rounds of layoffs in the past two years, and it's been sued by former employees who alleged the site fired women when they became pregnant.
The company is exploring "strategic partnerships" with other brands as part of its restructuring. It is also seeking a new equity partner, according to a press release. The company has raised $65 million throughout its history, including a $16 million Series C funding round in 2015 and $40 million Series B in 2012.
Amoruso stepped down as CEO last year, and now she is resigning as executive chairman, according to Re/code.
Order those crop tops now. Or try Tobi.
Emma Hinchliffe is a business reporter at Mashable. Before joining Mashable, she covered business and metro news at the Houston Chronicle.
