Hello fashion lovers, today marks a day us millennial girls didn’t see coming; online fashion retailer Nasty Gal filed for Chapter 11 bankruptcy protection.
Luckily for fans of the brand, founder Sophia Amoruso doesn’t think the company will shut down, in the immediate future anyway. However she will be stepping down as executive chairman.
CEO Sheree Waterson released this statement:
“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.”
Or as Forbes puts it, “the startup has been unable to secure capital or a buyer as the gap between top-line growth and profitability widened.”
Amoruso was on stage at Australia’s Business Chick conference when the news broke and tearfully told the crowd: “Filing for bankruptcy is actually the most responsible decision for the business.”
The company estimated both its assets and its liabilities at between $10 million and $50 million in its filing Wednesday with the U.S. Bankruptcy Court for the Central District of California.
Chapter 11 bankruptcy is defined as: “A form of bankruptcy reorganization available to individuals, corporations and partnerships. It has no limits on the amount of debt. It is the usual choice for large businesses seeking to restructure their debt.”
And that’s exactly what the company plans on doing. Waterson also states: “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.”
Regardless of the fact they have to take some time to restructure their business, Nasty Gal continues to pave the way for millennial’s. The company started when Sophia Amoruso was 22 years old and is considered a founding member of the history of online shopping to some. Her company revolutionized more than just the online fashion industry. Her products delivered a message of self-expression and Sophia remained loyal and honest to her customers, and stayed true to her company’s culture.
She proved to the world that inexperience in an industry at a young age can make a difference in the world. It was and is a relatable brand that millennial’s still resonate with.
Not only has Amoruso built an online fashion empire but optimized the opportunities she had worked for and continued to grow her personal brand for being a female boss. She’s been vocal about how she achieved her success in hope’s to inspire other young women to do the same in their own rights.
Let this be an example to not fear failure, and that even the most successful business men and women sometimes need to take a step back and re-evaluate their brand in order to reach new highs of success.
Featured Image Via Pexels
