Bankrupt fashion retailer to initiate auction process

Nasty Gal is moving ahead with plans to be acquired by a British online fast-fashion retailer.



Nasty Gal said it plans to seek permission from the U.S. Bankruptcy Court to launch an auction process for the sale of its business. The Los Angeles-based company will seek approval of an agreement to have Manchester, England-based Boohoo.com act as the stalking horse bidder in that process with a bid of $20 million for Nasty Gal's intellectual property assets.



"We believe this path will generate the highest value for the company and ensure the continued success of the Nasty Gal brand that has served its consumers as a leading style destination over the last decade," said Joe Scirocco, Nasty Gal president and chief restructuring officer.



The auction is expected to take place in early February, with bidding procedures to be approved by the United States Bankruptcy Court for the Central District of California on or about January 5, 2017.



Nasty Gal will continue normal operations throughout the auction process and sale, which is expected to close by the end of February 2017.