While we love getting style tips from nasty gals (including the brand’s own founder, Sophia Amoruso, who just happens to have written two books that every #GirlBoss should read), it now looks like there’s trouble in the Nasty Gal galaxy. Nasty Gal has just declared bankruptcy (OMG nooo!), and we have the deets for what that means for your fave online brand.
Though we never want to hear the word “bankruptcy” associated with a brand we love, there’s no reason to say goodbye to NG quite yet. The company that was once the reigning online retailer of its niche now faces more competition than ever before, as well as some internal issues that are tripping them up.
“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,” said Nasty Gal CEO Sheree Waterson according to Mashable. This sounds very business-y, but basically, “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.”
So despite things seeming grim, it looks like Nasty Gal intends to fully fix the sitch and come back stronger than ever. And they wouldn’t be the first. American Apparel survived beyond bankruptcy, so there’s certainly a precedent and realistic outcome that Nasty Gal can aim for.
And they certainly have plans in the works. Not only are they looking for ways to strengthen the brand and financial sitch, but according to Re/code, Amoruso, who stepped down as CEO last year, will now also resign as executive chairman. While her personal brand may still be buzzing (she even has a Netflix show in the works), the company has faced trouble over the last few years, including criticism of their treatment of employees and lawsuits. Eek.
No doubt there will be plenty of changes coming to Nasty Gal behind the scenes, but on our end, customers may not notice much of a change… at least for now.
What do you think about Nasty Gal filing for bankruptcy? Tweet us @BritandCo!