Nasty Gal plans to file Chapter 11 bankruptcy and restructure

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But news this morning has confirmed that Nasty Gal is preparing to file for Chapter 11 bankruptcy protection, allowing it to reorganize its business.

According to the tech news site Recode, and Fortune, Amoruso - who handed over the role of chief executive previous year - will be resigning as executive director of the company as it files for chapter 11 bankruptcy and restructures. Is this the end of too-tight sequin dresses and strangely placed cut-outs as we know it?

Waterson added that the business will also use the period under which it is in Chapter 11 (a form of bankruptcy protection in the U.S. which affords troubled business the time to restructure and refinance) to look for a new backer to inject capital into the business.

The company also said it expected to attract a "new equity partner or sponsor to take the company forward with a healthy balance sheet", though Nasty Gal emphasized that it plans to emerge from Chapter 11 and continue operations with or without such a partner.

Nasty Gal has raised $65 million over the years, including from Index Ventures and renowned retail executive Ron Johnson. The retailer saw explosive success in the last few years, consistently growing in sales and revenue. Notable mentions include the release of Amoruso's 2014 book #GirlBoss - a New York Times bestseller which now has a podcast, website, conference and TV show coming to Netflix ( Charlize Theron is an exec producer), as well as making Forbes' Richest Self Made Women List this year. In fiscal year ending January 31, 2015, Nasty Gal had a net revenue of $85 million, according to court documents.

And in September, Women's Wear Daily reported Nasty Gal was looking for a buyer.

According to recent reports, had customers in over 60 countries. The company also now owes more than $80,000 in payroll and more than $329,000 in paid time-off.

Bankruptcy sounds dire, but this doesn't mean that Nasty Gal is going under for good.

Then at least two rounds of employee layoffs were reported in 2016.