In more bad news for those united under “Nasty,” today we learned that e-tailer Nasty Gal (which also has two brick-and-mortar locations in L.A.), is filing for Chapter 11 bankruptcy.
Dazed reports that all is not lost for the company, despite the fact that founder Sophia Amoruso is stepping down as executive chairwoman. There is still a chance that the brand could be bought out or invested in. The bankruptcy filing might allow the company to hold out a little longer.
“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,” said Sheree Waterson, Nasty Gal’s CEO. “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.”
This isn’t the only bout of trouble the company has faced this year. Last February, Bloomberg reported that Nasty Gal laid off ten percent of its staff (19 employees), with a similar move happening in 2014. The company has also been hit with a number of lawsuits for knocking off wares by high fashion labels.
“While this was a difficult decision to make, it is necessary and will allow us to continue to evolve as a company," Waterson said in a staff email obtained by Bloomberg in 2015 (she was appointed CEO that year). "We will focus on strengthening our core business, improving operational efficiencies, and continuing to develop our iconic brand.” Perhaps this was always part of the plan?
Diehard fans of Nasty Gal needn’t worry too much—there are plenty of sites that sell the same labels. Amoruso herself will be fine, as she has become more of figurehead of women’s empowerment since her book #Girlboss was published. Regardless, there is the chance that people will be unemployed, which is always sad.