This Wednesday, while everyone was distracted with the US election, American brand Nasty Gal filed for Chapter 11 bankruptcy protection in the Central District of California.
The company was launched 10 years ago as an eBay shop by Sophia Amoruso, quickly becoming one of fastest growing e-commerce startups in the world, but in recent times it's been hit with liquidity and balance sheet issues, despite making an estimated $300m in revenue last year. WWD also reported in September 2015 that the brand was "aggressively looking for capital" or even looking for a potential buyer.
"Our decision to initiate a court-supervised restructuring will enable us to address our immediate liquidity issues, restructure our balance sheet and correct structural issues including reducing our high occupancy costs and restoring compliance with our debt covenants," said CEO Sheree Waterson in a statement. "We expect to maintain our high level of customer service and emerge stronger and even better able to deliver the product and experience that our customers expect and that we take pride in bringing to market."
It's also been reported that Amoruso plans to resign as executive chairwoman, although that is yet to be confirmed.