A retail brand loved by many, including celebs like Selena Gomez and Lena Dunham, Nasty Gal is a cult store favorite where cool girls shop online. Sophia Amoruso founded the LA-based company a decade ago and has even earned herself the title of #GirlBoss because of it. And so with her obvious success comes the shock of our lives when we heard about her recent court filing of Chapter 11 bankruptcy protection this week.
In a press statement, Nasty Gal’s current CEO Sheree Waterson says, “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.”
Earlier this year, Nasty Gal also laid off employees as part of their restructuring. There are speculations as well that Sophia will leave the company as its executive chairwoman, just after stepping down as its CEO.
While this doesn’t exactly mean that Nasty Gal is really going under, it does prove that the brand is undergoing a critical phase as it tries to fully recover from the previous turbulent years.