Nasty Gal, the edgy vintage-inspired clothing store founded by Sophia Amoruso, is about to be sold for $20 million to British online store Boohoo.com. This comes after the company filed for Chapter 11 in November.
Everybody is now trying to figure out exactly what went wrong, given that the brand went from a humble eBay store to a $100 million company in six years, then tumbled back down again.
The dominant thesis is that Nasty Gal spent too much on advertising and plush new headquarters, but never acquired a loyal customer base, partly because product quality wasn't high. The brand was also deeply tied to Amoruso and suffered when she stepped down as CEO in 2015.
Read more in the L.A. Times.
[Photo: John Sciulli/Getty Images for Nasty Gal] ES