Boohoo one step closer to Nasty Gal buy but other bidders could still appear

By

Sandra Halliday

Published
Jan 9, 2017

Boohoo.com said Monday that the process for its proposed acquisition of failed Nasty Gal’s assets for $20m has been given the go ahead by the US Bankruptcy Court.

The company had announced its widely expected move on Nasty Gal just after Christmas but said at the time that it was a “stalking horse bidder”, that there would be a 30-day bidding process and that other interested potential buyers could emerge.

Nasty Gal filed for Chapter 11 bankruptcy in November and in the year to last February made a net loss of $21m on revenue of $77.1m.

On Monday Boohoo said that “the group confirms that the US Bankruptcy Court has approved the process for the sale of the Nasty Gal assets,” but that with a deadline of February 2, there could still be other bidders waiting in the wings.

It also said that if the group is successful in acquiring Nasty Gal, the proposed transaction will be subject to final approval by the US courts expected on or around February 8.

It added: “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.”