Online fashion retailer Boohoo has entered into an asset purchase agreement to acquire certain intellectual property assets from apparel firm Nasty Gal for US $ 20 million.
Boohoo’s subsidiary, Boohoo F I Limited, will be appointed as the “stalking horse” bidder for the Nasty Gal brand and customer databases, in accordance with Section 363 of the United States Bankruptcy Code. Nasty Gal delivered net revenue of US $ 77.1 million in the year ended 1 February 2016 and filed for Chapter 11 Bankruptcy Code protection in the US Bankruptcy Court.
Mahmud Kamani and Carol Kane, Joint CEOs commented, “Should we be successful in acquiring Nasty Gal it would represent a fantastic opportunity to add such a well-established, global brand to the Boohoo family. Following our recent acquisition of PrettyLittleThing.com we believe this would represent an ideal next step in inspiring an ever-growing range of young customers internationally.”
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Nasty Gal will leverage Boohoo’s existing product development, supply and distribution expertise. The company’s management board believes the proposed transaction has the potential to accelerate the Group’s international growth, particularly in the US, building on Boohoo’s existing customer reach and product range across the globe.
