British online fashion retailer boohoo.com has come a lot closer to acquiring the brand and customer database of US fashion retailer Nasty Gal, which filed for chapter 11 bankruptcy protection back in November.
Nasty Gal, in an update for investors, has declared that it entered an asset purchase agreement with boohoo on December 28, which was then approved by the US Bankruptcy Court. As it stands, boohoo is bidding $20 million for the Nasty Gal brand name and customer database.
Now remaining is a court approved bidding process, with additional bids closing on February 2. Nasty Gal writes,
The Group’s bid may not result in a transaction if higher or more favourable offers are obtained by Nasty Gal during the auction process.
As long as there are no other, more favorable bids that are raised, the proposed acquisition by boohoo will be subject to final approval by the US courts — expected to take place on or around February 8. Nasty Gal adds:
The Board believes the proposed transaction has the potential to accelerate the Group’s international growth, particularly in the US, building on boohoo’s existing customer reach and product range across the globe.
Founded in LA back in 2006, Nasty Gal has raised around $65 million, according to CrunchBase, with investors including Index Ventures and retail executive Ron Johnson.
Also founded in 2006, boohoo’s focus is selling its own unique bran of affordable, quick fashion to a millennial target group, and said it sees the Nasty Gal brand as “an ideal next step in inspiring an ever-growing range of young customers internationally”.
Just last month, the retailer acquired a majority stake in another online fashion retailer, Pretty Little Thing, for £3.3 million. Boohoo also said that Nasty Gal’s “bold and distinctive” fashion brand would complement its offer and accelerate its growth in the US. Boohoo joint chief executives Mahmud Kamani and Carol Kane said,
Should we be successful in acquiring Nasty Gal it would represent a fantastic opportunity to add such a well-established, global brand to the Boohoo family. Following our recent acquisition of PrettyLittleThing.com, we believe this would represent an ideal next step in inspiring an ever-growing range of young customers internationally.
