The judge overseeing Nasty Gal Inc.’s bankruptcy case on Wednesday approved the company’s sale to Boohoo.com plc.
Boohoo, a fast-fashion e-tailer based out of Manchester, was the stalking horse bidder with a $20 million offer for the Nasty Gal intellectual property and customer data. Competing offers were due last week. However, with no other qualified bids on the table, the bankruptcy auction scheduled for Tuesday was canceled.
The deal is expected to close Feb. 28.
“We are delighted to have been successful in our bid to acquire Nasty Gal. It represents an exciting opportunity to accelerate our international offering and inspire an ever-growing range of young customers in the U.S. and around the world,” Boohoo’s co-chief executives Mahmud Kamani and Carol Kane said in a statement.
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Nasty Gal would be the second completed acquisition for Boohoo, which closed on its purchase of a 66 percent stake in Three Clothing Company Ltd. in January. Three Clothing is the parent to e-tailer PrettyLittleThing. Boohoo paid 3.3 million pounds, or $4.13 million at current exchange rates, for the PrettyLittleThing business.
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Boohoo revenue for its most recently reported fiscal year, ended in February 2016, totaled 195.4 million pounds, or $244.5 million, with the majority of that business generated in the U.K. The company had adjusted earnings before interest, taxes, depreciation and amortization last year of 18.7 million pounds or $23.4 million.
The deal for Nasty Gal does not include the company’s operations or two retail stores in Santa Monica and Los Angeles. A wind down of the Nasty Gal business is expected to happen over the next 60 to 90 days. It’s unclear if any of the company’s executives will transition with the IP over to the new ownership.
Nasty Gal, like Boohoo, was founded in 2006. The company recorded net revenue for the 12 months through January of $77.1 million, with negative EBITDA of $15.4 million during that same period, according to court documents. The company, which struggled to scale in step with its own rapid growth, filed for bankruptcy protection in November.