Boohoo.com PLC, a holding company, sells its own brand of products like shoes, clothing and accessories through the website boohoo.com. It sells products in over 100 countries including Ireland, Australia and United Kingdom and operates German, Italian, Spanish, French and English websites. This online British fashion retailer is now closer to purchasing US retailer Nasty Gal, which had filed for Chapter 11 bankruptcy in November. It seems unclear whether the proposal includes the current e-commerce business of Nasty Gal.
Boohoo has bid $20 million for the customer database and brand name of Nasty Gal. According to Nasty gal, an agreement of asset purchase was entered on 28th December with Boohoo. A bidding process, approved by court, will now follow, the closing date being 2nd February for additional bids. Considering the fact that no more favorable bids would be obtained, the final approval of US courts to the acquisition proposed by Boohoo would be given by 8th February.
Previously, Boohoo had acquired a major stake of £3.3 million, in Pretty Little Thing, another great online fashion retailer. Referring to Boohoo’s, Nasty Gal bid, the court said that the transaction proposed by Boohoo has the potential of accelerating the international growth of the Group, particularly in US, on the basis of its reach of existing customers and the range of products across the world.
Founded in 2006 in LA, Nasty Gal, as per CrunchBase, raised about $65 million, with the help of investors like Index Ventures and Ron Johnson, a retail executive. Founded in the same year, Boohoo, which focused on selling their own brand, a fast fashion economical to chiliad, said that it looks upon the Nasty Gal brand as a next step to inspire an international range of ever growing young customers.
After the news of the bid was revealed last year, Mahmud Kamani and Carol Kane, the joint chief executives of Boohoo, said that if they are successful in acquiring Nasty Gal, it would be an excellent opportunity to have such a well-established global brand. Clearing many of the hurdles Boohoo has finally moved closer to acquire the Nasty Gal brand.