Nasty Gal is going out with a bang, and not necessarily a good one.
The Los Angeles e-tailer, which was acquired out of bankruptcy by Manchester-based Boohoo.com plc, looked to soothe the concerns of unhappy customers who were experiencing delays with their online orders following a wave of complaints online.
Nasty Gal filed for bankruptcy in November and has been liquidating its inventory, first with 50 percent off sales across their stores and online. The discount was increased to 70 percent on Monday with the sales getting big coverage from digital media sites advertising the promotions and causing the surge in orders.
Comments on the company’s Instagram page have complained—and in some cases become downright nasty—pointing out difficulties reaching customer service for order inquiries, receiving the wrong product, cancelled transactions with no explanation or having partial orders shipped, among other laments.
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The company addressed the backlash late Thursday with an email to customers who had placed orders, explaining the high volume of sales was causing the delays.
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“We can assure you that if you’ve received confirmation for your order, it will be fulfilled, and we’re doing our best to ensure that it gets to you as soon as possible,” the email said.
Operational challenges are part of what contributed to the company’s tumble, with back-end functions unable to keep pace with the company’s rapid growth, according to documents filed in bankruptcy court.
The company’s net revenue for the 12-month period ended in January was down 9 percent from a year earlier to $77.1 million. The company’s earnings before interest, taxes, depreciation and amortization for the same January period was negative $15.4 million, widened from negative $6.3 million a year earlier.
A bankruptcy court judge approved the sale of Nasty Gal’s intellectual property and customer data to Boohoo this month after no other qualified bidders stepped forward with a competing offer.