Nasty Gal Prepares to File for Bankruptcy

by San Antonio Attorney

Nasty Gal, the American fashion retailer for young women, is reportedly readying to file for Chapter 11 bankruptcy.  It plans to reorganize its company, according to reports.

In addition, Nasty Gal founder Sophia Amoruso is reportedly stepping down as executive chairwoman, whilst Danny Rimer will resign from the board.

The 10-year old company has had a difficult last two years.  It has been laying off employees starting last year, and Amoruso gave up the position of CEO at the start of 2016.  Former employees are also suing the company.

Nasty Gal was founded by Amoruso when she was 22 years old and she developed the business into an estimated $100 million online empire.  It recently dabbled into politics after Donald Trump called Hillary Clinton a “nasty woman” at a presidential debate.

The vintage clothing retailer momentarily changed its trademark and started selling clothes with “nasty woman” labels.

Amoruso is also the bestselling author of #Girlboss.

In this challenging economic period, bankruptcy is a popular strategy to manage debt.  Through bankruptcy, a debtor may discharge or restructure debts while the federal bankruptcy court suspends all collection activities of creditors.

For companies or individuals who are financially distressed, a reorganization bankruptcy can be a feasible option to restructure finances without having to give up any assets or income.  Depending on a debtor’s circumstances, a San Antonio Attorney can give advice on what type of bankruptcy to file.

Leave a Comment

Previous post:

Next post: