#GirlBoss Sophia Amoruso Faces Major Backlash After Nasty Gal Bankruptcy
Nasty Gal has officially closed its brick and mortar shops after filing for bankruptcy almost four months ago. Sophia Amoruso created Nasty Gal in late 2006 as an eBay store by selling vintage clothing. By 2012, the Nasty Gal brand was an example of overcoming adversity and evolving in the business world by raking in almost $100 million in sales, according to the Los Angeles Times.
The website, Boohoo, has purchased Nasty Gal and will continue to run the brand’s online store. However, the business is facing major backlash on social media because customers are claiming that they have yet to receive their orders. Just hours ago, Nasty Gal issued a statement apologizing for the inconvenience customers are experiencing with their orders.
We’re so sorry for any inconvenience you may be experiencing with your orders and we'll be reaching out to each of you to get things sorted.
— NASTY GAL (@NastyGal) February 28, 2017
Another message was tweeted from their Twitter account, “… Rest assured–we’ll get you all taken care of, we’re not goin’ anywhere.” The company then offered “free ground shipping on ALL orders, no minimums.”
Two of Nasty Gal’s California locations on Melrose and Santa Monica closed this week. The online store is liquidating the products on its website by slashing a whopping 70 percent off. The news comes after a November filing for Chapter 11 bankruptcy protection, which will likely close on February 28.
How Sophia Amoruso's Nasty Gal went from an $85 million company to bankruptcy in less than two years https://t.co/TGA0hOag7F pic.twitter.com/vueWpERPwp
— The Wall Street Journal (@WSJ) February 24, 2017
Nasty Gal observed National Margarita Day by posting a photo of 88-year old social media star, Baddie Winkle, modeling a swimsuit. However, Instagram commenters disregarded the photo and were more concerned with their online orders. One commenter mentioned the photo represented how old the customers would be before they obtain their orders. Nasty Gal’s Facebook page has also been inundated with angry customers that are asserting their online orders have not been fulfilled.
Various individuals who were experiencing difficulty with their online requests noticed that Nasty Gal wasn’t reacting to messages or calls, which has prompted to a lot of disappointment. One commenter said of Sophia Amoruso, “… if she filed bankruptcy it is not my problem… I do not care, #NastyGal isn’t professional about their company.”
Nasty Gal had several years of rapid growth during the peak of its success. However, the business hit a wall in 2014 when it warned revenue would be “flat in comparison to the previous year at worst and 10 per cent greater at best,” according to the Daily Mail.
Sales proceeded to decline, and in 2015, Amoruso stepped down as CEO. Amoruso opened up to Forbes about her decision.
“I didn’t love having eight people reporting to me and asking me over and over if we’re hitting targets… I’m a creative. I’m a brand-builder. I’m a rainmaker. I’m a pretty good marketer, but that’s not something I want to do every day.”
Sophia Amoruso was Nasty Gal’s founder and exemplified the Los Angeles organization. Amoruso drew in a whirlwind of coverage surrounding her clothes following her newfound wealth story. The entrepreneur who founded the company at the age of 22, went to write two books, including the 2014 bestseller, #GirlBoss, which chronicles how she founded one of the fastest growing clothing retailers in the world. Amoruso has also hosted a successful podcast.
The Los Angeles Times reported that Nasty Gal notified the state of Kentucky that they intended to shut down their 500,000 square-foot order fulfillment facility and lay off its 70 employees by April.
Regardless of the bankruptcy filing, Nasty Gal said it was assured it would go back to its previous success.
Nasty Gal’s $20 million purchase to Boohoo is allegedly anticipated to close on February 28. In a statement, Boohoo lauded Nasty Gal’s “extremely distinctive style” and “loyal customer base” will ultimately complement Boohoo and expand “global opportunities for growth.”
Sophia Amoruso recently tweeted presumably in response to recent events. Many fans were supportive — however, many begged for her to have customer service answer emails and phone calls from customers.
Doing my best
— Sophia Amoruso (@sophiaamoruso) February 25, 2017
Carol Kane, Boohoo Group joint chief executive officer and the interim chief executive of Nasty Gal said Boohoo is thrilled to have Nasty Gal as part of their family.
“We are thrilled to have Nasty Gal as a part of our family, and are excited by the opportunity to expand the company into international markets.”
According to Women Wear Daily, in December, Boohoo also bought a controlling stake in the fast fashion website Pretty Little Thing for $4 million.
[Featured Image by Alberto E. Rodriguez/Getty Images]
