#GIRLBOSS company Nasty Gal to file for bankruptcy

15 November 2016
By Fashion Quarterly

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Sophia Amoruso’s clothing brand is undergoing big changes.

Nasty Gal – the clothing label behind the #GIRLBOSS revolution – will file for bankruptcy, as the online retailer tries to find a way to stay afloat.

The vintage clothing business, which grew from a grass-roots E-Bay operation founded by Sophia Amoruso in 2006, petitioned a court in California on Wednesday with the motion to file Chapter 11 protection, WWD reports.

If granted, the motion will give the business time to sort out its debts as it reorganises its financial position.

“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,” Sheree Waterson, Nasty Gal’s Chief Executive Officer, said in a statement.

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“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.”

Amoruso will also be resigning as executive chairwoman – a role she assumed after stepping down as CEO in early 2015.

The e-tail company has been through a difficult few years. Job cuts were made this year and last, and the company has also been sued by former employees claiming discrimination.

https://www.instagram.com/p/BMZdsITg39w/?taken-by=sophiaamoruso&hl=en

In its official statement, Nasty Gal assured that its customers’ shopping experience wouldn’t be affected in light of this petition. There’s no word yet as to what will happen to the brand’s two physical Los Angeles retail locations.

Despite setbacks to her business and significant changes to her personal life – she divorced from her musician husband Joel Jarek DeGraff in August this year – Amoruso continues to stride forward like the #girlboss she is.

https://www.instagram.com/p/BK_Dsx6gQTX/?taken-by=sophiaamoruso&hl=en

Her New York Times bestseller business guide #GIRLBOSS is being made into a Netflix series, and her second book, Nasty Galaxy, a coffee-table sized tome, based on the Nasty Gal blog was released in October.

Photos: Getty Images, Instagram

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