An acquisition deal has seen WSG Brands, known for its ownership of Allbirds, purchase Nasty Gal for $16 million. The transaction was made with Debenhams Group, which previously went by the name Boohoo. Debenhams had initially taken ownership of Nasty Gal in 2017 with a $20 million purchase. This acquisition was made after a 2016 bankruptcy auction in which Boohoo was the sole bidder.
Financial Insights and Strategic Shifts
Nasty Gal reported a gross merchandise value of 12 million pounds (approximately $16 million) in the past year, alongside an adjusted EBITDA of 400,000 pounds. Debenhams, highlighting that Nasty Gal’s performance was not crucial to their overall operation, stated that this sale supports their strategy to transition towards a marketplace-driven, capital-lite model.
Founded in 2006 by Sophia Amoruso, Nasty Gal evolved from selling a distinctive mix of apparel finds on eBay to retailing in major outlets like Nordstrom, Macy’s, and Amazon. Under the stewardship of WSG Brands, the list of retailers is anticipated to grow significantly.
Expansion Plans Under New Ownership
WSG Brands plans to increase Nasty Gal’s worldwide presence by expanding its range of products and fulfilling strategic partnerships, according to their announcement. This expansion will enhance the brand’s offerings with denim, footwear and bags, jewelry, activewear, swimwear, sleepwear, beauty products, travel goods, and other lifestyle categories, predominantly through licensing deals.
Jack Cheika, founder and CEO of WSG Brands, emphasized the brand’s strong identity and cultural resonance. He remarked on the potential to introduce Nasty Gal to new consumers and transform it into a global lifestyle brand, while maintaining its unique character.
The acquisition of Nasty Gal follows WSG Brands’ previous investments, including the purchase of Allbirds and the streetwear label Von Dutch, acquired two years ago.
Reporting based on coverage first published by retaildive.com.