“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 Nasty Gal chief executive officer Sheree Waterson. “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 unclear what exactly led to this, as Nasty Gal was once one of the fastest growing e-commerce sites, and the first of its kind for girls like you and me who wanted edgy clothes at a reasonable price point.
Perhaps it was Nasty Gal’s move to higher price points and lower quality, as any shopper who has followed the site from the early days has noticed. Perhaps it was the growing popularity of brands like Missguided and Boohoo who provided similar clothing at a lower price point. Perhaps it was the “toxic work environment” that many past employees reported.
Sophia Amoruso also is allegedly planning to resign from her position as executive chairwoman, the position she took after stepping down from CEO last year, according to Recode.
Its unclear what this means for Nasty Gal and for those of us who want to continue buying LBDs and crop tops from the site, but we can only wait and find out.