Manchester-based online fashion retailer boohoo.com plc said it has made an offer to acquire “certain intellectual property assets” from US retailer Nasty Gal Inc for $20 million.
Nasty Gal filed for Chapter 11 bankruptcy code protection in the US Bankruptcy Court on November 9, 2016.
“Subject to US court approval, to be sought on 5 January 2017, boohoo’s subsidiary, Boohoo F I Limited, will be appointed as the ‘stalking horse’ bidder for the Nasty Gal brand and customer databases …” said boohoo.com.
boohoo.com said its bid may not result in a transaction if “higher or more favourable offers” are obtained by Nasty Gal during the auction process.
“Founded by Sophia Amoruso in 2006, Nasty Gal is a bold and distinctive brand for fashion-forward, free-thinking young women which the board believes would complement boohoo’s own inclusive and inspirational brand,” said boohoo.com.
“Leveraging the group’s existing product development, supply and distribution expertise, 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.”
Nasty Gal delivered net revenue of $77.1 million in the year ended February 1, 2016 and made a net loss after tax of $21 million.
Mahmud Kamani and Carol Kane, boohoo.com joint CEOs, 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.”