Thanks to American Apparel, we business world outsiders learned long ago that Chapter 11 bankruptcy isn’t necessarily an arbiter of doom and gloom. Which is why, when we learned that Sophia Amoruso-founded, Los Angeles-based retailer Nasty Gal had filed for the big one-one this Wednesday, we took it in stride. (That, and we’ve developed a pretty tough shell over the past 24 hours.)
The company, now 10 years young, began as an eBay shop and transformed into one of the fastest-growing e-commerce startups in the game. However, over the past two years, there have been hints of trouble in body-hugging, vintage-inspired apparel paradise. In February, Nasty Gal cut about ten percent of its workforce. In September, Women’s Wear Daily revealed that the company was “aggressively looking for capital” or maybe even a buyer. In addition, the company’s been accused of wrongful termination and discrimination on more than one occasion. That said, according to Forbes estimates, Nasty Gal still brought in $300 million in revenue in 2015.
“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 chief executive officer Sheree Waterson told WWD. “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.”
In a press release, the company revealed that it is “exploring strategic partnerships with other strong brands and will continue to explore these options throughout the restructuring process.” Here’s hoping it pulls an Adidas (or a Puma), lassos some social media-savvy influencers and gets back on its feet.
Meanwhile, Recode reports that OG #GirlBoss Sophia Amoruso will be resigning as executive chairwoman. In the past, the former CEO expressed that the company’s meteoric rise to success had left her a tad outside of her comfort zone, operationally speaking. “While I find myself really capable of leading our customer… the company need[s] a CEO with operational expertise and the ability to take Nasty Gal to the next level of maturity,” she said of her first resignation. We assume Amoruso views the current situation similarly.
A decade above the influence. Onward babies. I love you.
— SOPHIA AMORUSO (@sophiaamoruso) November 10, 2016
Yesterday, Sophia took to Twitter to say her goodbyes: “A decade above the influence. Onward babies. I love you,” she wrote. Onward indeed. We can’t wait to see what the second-youngest Richest Self-Made Woman in the U.S. and New York Times-bestselling author has in store for us next.
[ via Fashionista ]