Dive Brief:
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One of Allbirds’ new owners, WSG Brands, has acquired Nasty Gal from U.K. apparel company Debenhams Group, formerly known as Boohoo, for $16 million.
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Boohoo acquired Nasty Gal in 2017 for $20 million. Boohoo was the sole bidder at the auction conducted as part of Nasty Gal’s 2016 bankruptcy.
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Nasty Gal generated 12 million pounds (about $16 million at press time) in gross merchandise value last year and 400,000 pounds in adjusted EBITDA. Debenhams said the brand’s results were “not material” to the company and the sale aligns with its strategy to transition into a “marketplace-led business model that is capital-lite.”
Dive Insight:
Nasty Gal was founded in 2006 by Sophia Amoruso, who began as an eBay seller of an eclectic collection of apparel finds and shoplifted garments.
The brand opened a store in 2014 but now sells through places like Nordstrom, Macy’s, Amazon and, of course, Boohoo. That list is set to grow under new ownership via an expansion of its “global footprint, distribution, product categories and strategic partnerships,” WSG Brands said in a press release Tuesday.
WSG founder and CEO Jack Cheika said in a statement that the brand retains “an incredibly strong identity and a level of cultural recognition that very few brands achieve.”
"We see a tremendous opportunity to build upon that foundation, introduce the brand to a new generation of consumers and expand Nasty Gal into a global lifestyle brand while staying true to the attitude and individuality that have always defined it,” Cheika said.
Plans are to expand the brand’s assortment to include denim, footwear and bags, jewelry, activewear, swimwear, sleepwear, beauty, travel and additional lifestyle categories, largely via licensing deals, per the release.
In addition to this acquisition and the deal earlier this year to acquire Allbirds in partnership with Aerosoles owner American Exchange Group, WSG Brands bought streetwear company Von Dutch two years ago.
