Fashion Business Nastygal Filed For Bankruptcy Protection

U.S.A

Electricity supplier NastyGal filed a bankruptcy protection application to the court.

According to people familiar with the matter, the company's founder, Sophia Amoruso, is about to step down as chairman of the board.

Sheree Waterson, chief executive of the company, replied that the application for production protection can "effectively solve the current cash flow problem and rebuild trust between the company and the creditor".

But in June of this year, Sophia Amoruso also ranked Forbes's "richest women from scratch" in the list of $280 million.

In 2006, Sophia Amoruso, a second-hand clothing brand on eBay, was only 22 years old. She once sold a second-hand Chanel jacket bought for 8 dollars for 1000 dollars.

With this sales experience, Sophia Amoruso has built up its own experience.

Platform NastyGirl (Chinese means "bad girl").

Positioning for sexy unruly, to cater for young women to pursue personalized fashion trend.

SophiaAmoruso

SophiaAmoruso autobiography "#Girlboss"

Over the next few years, Nasty Gal has been seen as a model of successful business models in the Internet age.

In 2012, INCMagazine, the American business newspaper, rated it as "the fastest growing Fastest" (Growing Retailer).

Two years later, NastyGal opened its first entity store with an annual profit of $200 million.

In addition to the Internet, VCs' curiosity and enthusiasm for the fashion industry are also the driving force behind NastyGal's triumphant progress.

Index Ventures, a venture capital firm holding shares in fashion Farfetch and Net-a-Porter, invested $49 million for Nasty Gal.

Last year, when the company launched the C round of financing, it was awarded $16 million by Ron Johnson, the father of Apple retail business.

However, we can see from the figures that the C financing is much lower.

What made investors become popular? Internet Co suddenly discovered that investors seemed to have a tight belt. Birchbox, the US electronics manufacturer, cut 15% of its employees this year. The OneKings Lane of home electronics was pferred to 11 million 780 thousand dollars, and the paction price was far less than that of the 200 million yuan.

NastyGal

For the realist group seeking the return on investment, the drop in investment figures mostly means that the company's performance has declined or at least deteriorated.

Sophia Amorus himself had previously told potential investors not to have high expectations.

At the beginning of last year, she handed over the position of chief executive and retired to lead the brand creativity and market team.

The new Sheree Waterson has previously worked for Speedo, Levi 's and Lululemon.

After NastyGal, 10% of the employees were cut off.

CEO explains that layoffs are not only related to the clothing industry, but also the overall impact of the retail industry.

In the past four years, Nasty Gal has opened two entity shops in Losangeles.

As the cornerstone of online development, offline stores have long been adopted by most Internet fashion brands, such as Everlane and Warby Parker.

Compared with the physical store, the website is lost in authenticity - you can't observe and touch clothes in natural light, let alone try it on.

Once this step is taken, it means that the shortcut to the Internet has come to an end.

From this moment, the brand has been on the same starting line with the traditional fashion companies, and has become a compound retailer.

Shop management, operating expenses and so on.

At present, Nasty Gal is trying to find new investors to save the situation in addition to filing for bankruptcy protection.