Boohoo will acquire Nasty Gal for $20 million
February 15, 2017 04:01 PM
Women’s clothing retailer Nasty Gal Inc. has a new owner and will live on under that new owner.
U.K. fashion e-retailer Boohoo.com UK Ltd., No. 166 in the Internet Retailer 2016 Europe 500, bought Nasty Gal for $20 million in a deal that will become final at the end of this month. Nasty Gal, which is also No. 98 in the Internet Retailer 2016 Top 500 Guide, filed for Chapter 11 bankruptcy protection in November. A Boohoo spokeswoman confirms that Nasty Gal will continue to operate as a standalone pure-play e-commerce site, praising the brand’s edginess as a competitive advantage.
“Nasty Gal has developed an extremely distinctive style which has become synonymous with the brand,” she says. “Its loyal customer base and unique brand naturally complements the Boohoo offer, bringing something different to the customer, whilst creating increased global opportunities for growth.” Nasty Gal boasted an average online order value of $200 in 2015 according to Internet Retailer estimates, compared to 75 euros ($79) for Boohoo.
Nasty Gal grew its online sales to an Internet Retailer-estimated $384 million in 2015, up 20% from $320 million in 2014, according to Internet Retailer’s Top500Guide.com.
Meanwhile, troubled retail chain Limited Stores LLC (No. 216) could soon have a new owner.
Private equity firm Sycamore Partners bid for The Limited’s intellectual property, including its e-commerce site, social media accounts and customer list. The price is $25.75 million and bids are expected to be reviewed Feb. 23, according to Reuters. A Sycamore Partners spokesman would not confirm the $25.75 million figure.
The Limited shut down its website and filed for Chapter 11 bankruptcy protection a month ago citing assets in the $10-$50 million range and debts in the $100-$500 million range. The retailer had closed its stores in early January.
If the acquisition goes through, it would be the latest in a string of high-profile retail acquisitions for Sycamore Partners. In August 2015, the firm acquired department store chain Belk Inc. (No. 97) for $2.7 billion in cash. Belk generated an Internet Retailer-estimated $384.6 million in online sales in 2015, up 37.8% from $279.0 million the previous year, according to Top500Guide.com. The firm also owns multichannel teen apparel retailer Hot Topic Inc. (No. 283), women’s footwear and accessories retailer Nine West Holdings (No. 205), and women’s apparel retailer The Talbots Inc. (No. 137).
Sycamore also reportedly bid on sporting goods retailer Cabela’s Inc. (No. 61), which was eventually acquired by outdoor gear and accessories retailer Bass Pro Shops (No. 109) in early October for $5.5 billion in cash.