Boohoo‘s proposed acquisition of the intellectual property and certain assets of stricken US young fashion etailer Nasty Gal is set to complete by the end of the month.
The British business informed the market today that its $20m transaction should be finalised by 28 February subject to final approval by the US Bankruptcy Court, after no competing bids were lodged.
In a statement, Boohoo said: “[We] have been notified by Nasty Gal’s counsel that no acceptable, qualifying bids have been received for the intellectual property assets and customer databases and, therefore no auction will take place.”
Manchester-based Boohoo, which positions itself as “the voice and style of the social generation”, made its bid for Nasty Gal’s IP and assets at the end of December thus positioning itself as the so-called “stalking horse” bidder in any auction that might take place. Since no other viable bids were tabled, the Boohoo deal should be waved through.
Nasty Gal was founded in 2006 by LA-based entrepreneur Sophia Amoruso who was aged just 22 at the time. It ran into difficulties last year and was placed in Chapter 11 bankruptcy protection in the autumn at which point Amoruso, a high-profile figure and public speaker, stood down.
Nasty Gal delivered net revenue of $77.1m in the year ended 1 February 2016 a net loss after tax and operating costs of $21m. The revenue figure includes sales from vintage clothing and third party brands, which are excluded from the proposed acquisition by Boohoo, which includes intellectual property assets only and excludes all operating costs.
The deal will mark the second acquisition for Boohoo, which acquired 66% of young fashion etailer PrettyLittleThing for £3.3m in December.