Nasty Gal‘s fortunes have been on a downward spiral for some time now. The company was founded in 2006 by Sophia Amoruso–who famously coined the term “GirlBoss” and wrote a popular book of the same name. She launched the company as an eBay store, where she sold vintage clothes she had snagged from garage sales and Goodwill stores.
But as the brand grew, with revenues reaching $100 million a year at one point, there were widespread reports of employee unhappiness and poor leadership from senior management. Last January, Amoruso stepped down as CEO but stayed on as a board member. However, she has just stepped down as executive chairwoman.
In 2012, Nasty Gal received $49 million in funding from Index Ventures and retail exec Ron Johnson topped that up with an additional $16 million in 2015. It is unclear what the company will do after the bankruptcy filing, but it might involve closing its two brick-and-mortar stores in Los Angeles or shedding staff.
Read more in the Wall Street Journal (paywall).
[Photo: via Nasty Gal]