British online fashion retailer boohoo.com is a step closer to acquiring the brand and customer database of US fashion retailer Nasty Gal, which filed for chapter 11 bankruptcy protection back in November.
In an update for investors Nasty Gal writes that it entered an asset purchase agreement with boohoo on December 28, which was subsequently approved by the US Bankruptcy Court. Boohoo is bidding $20 million for the Nasty Gal brand name and customer database.
What follows now is a court approved bidding process, with the closing date for additional bids set at February 2. “The Group’s bid may not result in a transaction if higher or more favourable offers are obtained by Nasty Gal during the auction process,” writes Nasty Gal.
Should no other more favorable bids be obtained the proposed acquisition by boohoo will be subject to final approval by the US courts — expected on or around February 8.
“The 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,” it adds.
Since being founded in LA back in 2006, Nasty Gal has raised around $65 million, according to CrunchBase, with investors including Index Ventures and retail executive Ron Johnson.
Commenting on the bid last month, boohoo, which was also founded in 2006 and has focused on selling own brand, affordable fast fashion to millennials, said it sees the Nasty Gal brand as “an ideal next step in inspiring an ever-growing range of young customers internationally”.
Last month the retailer acquired a majority stake in another online fashion retailer, Pretty Little Thing, for £3.3M.