Nasty Gal files for Chapter 11 bankruptcy

What does this mean for the store?

Despite the #GIRLBOSS movement and the Netflix series revolving the brand, Nasty Gal has filed for Chapter 11 bankruptcy.

According to Women’s Wear Daily, the petition on Nov. 9 revealed that on Oct. 24, Nasty Gal was granted Chapter 11 protection at the Central District of California court.

However, Sheree Waterson, Nasty Gal’s chief executive officer, maintains that the “high level of customer service” would still continue during this time in order to “emerge stronger” in delivering products to their customers.

Waterson elaborated, “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.”

During its bankruptcy restructuring, Nasty Gal will continue looking for collaborations with brands or designer partnerships.

Nasty Gal only started expanding in 2014 with its first physical store in Los Angeles. The company opened its Santa Monica store in February 2015.

The company, founded by Sophia Amoruso, began as an eBay store in 2006. Amoruso soon expanded her business and cultivated a following for her Nasty Gal brand.

Amoruso stepped down earlier last year as CEO, as reported on Fashionweek.com. The founder of Nasty Gal has yet to confirm if she will step down as executive chairwoman.

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