Boohoo (LON:BOO) have announced that it will complete its $20 million (£16 million) acquisition of Nasty Gal, which recently filed for bankruptcy, at the end of the month.
Nasty Gal was forced to file for bankruptcy in November of last year, following continued strain to fulfill its business payments. Its founder, Sophia Amoruso said at the time that the decision was “the most responsible decision for this business”.
The company announced in December 2016 that it had begun negotiations to enter an asset purchase agreement to obtain various intellectual property assets and customer databases from the bankrupt Nasty Gal operations.
Given the fact that no other bidders were competing for the company, The US Bankruptcy Court is expected to give the go ahead for the deal by the 8th of February, cementing the merge.
This follows an earlier acquisition deal by Boohoo to buy smaller UK competitor PrettyLittleThing in December. Boohoo agreed a £3.3 million deal to acquire some 66 percent of PrettyLittleThing’s share capital, with the option to later gain the full enterprise for a further £5 million.
Boohoo was launched in 2006 by Mahumad Kamuni and his business partner, Carol Kane and is headquartered in Manchester, UK. The company is currently headed by CEO Kane, who previously supplied high street rival fashion chains such as Primark and New Look.
In 2015 the clothing brand was awarded Best Online retailer by the Loraine Awards and Reveal Awards. In addition, Reveal Awards selected the retailer as having the Best Saturday Night out style options, the best online holiday shop destinations, best for a bargain, and similarly best for celebrity style fashions.
After the announcement, shares were somewhat unresponsive to the deal and were trading down 0.85 percent as of 11.05AM (GMT) in early morning Monday trading.