US court approves Boohoo’s bid for Nasty Gal
US court approves Boohoo’s bid for Nasty Gal
The US Bankruptcy Court has approved Boohoo’s bid to acquire certain intellectual property assets and customer databases from Nasty Gal. Boohoo confirmed on 28 December that it had entered into an asset purchase agreement for the assets for £16.4m.
Nasty Gal originated as a vintage eBay shop in 2006, founded by Sophia Amoruso. It went on to raise over $60m from investors and transformed itself into an international site selling a range of brands, including its own, in addition to vintage pieces. However, despite popularity among young women, the company made a net loss of $21m on revenues of $77.1m in the year ending 1 February 2016. The company filed for bankruptcy protection on the grounds that it wanted to “attract a new equity partner or sponsor” in order to enable it to move forward.
Boohoo has since confirmed that it has entered into an asset purchase agreement with the brand. A court-approved bidding process will govern the proposed transaction. If higher or more favourable offers are received before 2 February, Boohoo’s bid may not result in a sale. However, if successful, the transaction will be subject to final approval by the US courts around 8 February
This follows the acquisition of fashion website Pretty Little Thing, set up by the children of Boohoo’s co-founder Mahmud Kamani, on which the company spent £3.3m. Kamani and Carol Lane, joint chief executives of Boohoo, said that they saw the purchase agreement as “a fantastic opportunity to add such a well-established, global brand to the Boohoo family” and that it “would represent an ideal next step in inspiring an ever-growing range of young customers internationally.”
US court approves Boohoo’s bid for Nasty Gal
