Boohoo circling for Nasty Gal

ONLINE fast fashion retailer Boohoo is believed to have placed a bid for Nasty Gal following the US company’s collapse into bankruptcy.

Los Angeles-headquartered Nasty Gal filed for Chapter 11 bankruptcy earlier this month, saying it was unable to pay back its creditors while its founder Sophie Amoruso left the business.

Now, according to Business of Fashion, Manchester-based Boohoo has tabled a “stalking horse” offer – a deal designed to test the market to ensure Nasty Gal receives the maximum amount of money for its assets.

It says Boohoo has filed a certificate of incorporation of a private limited company for Nasty Gal, Inc with Companies House. Boohoo’s Alan Pollitt is listed as secretary of the entity.

Nasty Gal, which has raised £51m in funding since its inception in 2006,  may be on the radar of other potential buyers but it is believed the Boohoo bid is favoured by the bankrupt company.

Boohoo looks likely to take part in a “363 sale” which in US law allows a company that has filed for Chapter 11 bankruptcy to quickly sell all its assets.