Posted by Inance Publicist on 12/6/2016 to
How on earth did this happen? Cult online fashion retailer Nasty Gal filed for Chapter 11 bankruptcy protection. Just a few years ago they raised $65 million between 2012 and early 2015. That is close to impossible to go though all of that money unless there is careless spending. Now, they are looking for a buyer to come in and save the day.
Nasty Gal's bankruptcy means Amoruso will tumble off Forbes' list of Richest Self-Made Women, where she was one of the youngest members. She made her debut this year with an estimated net worth of $280 million, based entirely on the assumed value of her majority stake in Nasty Gal, which according to multiple sources had nearly $300 million in sales. In 2016, Nasty Gal secured the top spot on e-commerce bible Internet Retailer's Top 500 guide thanks to its reported 92.4% compound annual growth. So how on earth did this happen?
It is now clear the startup was unable to maintain the momentum required by such investment. Index Ventures, which pumped $49 million into the edgy e-tailer, will be feeling the brunt of this bankruptcy. Partner Danny Rimer is expected to resign from Nasty Gal's board, as is Amoruso, the executive chairperson.
Could Forever 21 and H&M be next? Bebe is reporting major losses as well. Why do these companies over spend and set themselves up for failure is my question? Inance is 100% self funded with no debt. Thats the best way to do business. We strive for 100% satisfaction in customer service and all of our Inance women's clothing pieces are made in the USA!