Amid all the post-election hullabaloo and protests on Wednesday evening, online retailer Nasty Gal quietly announced its was filing for Chapter 11 bankruptcy protection.
"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," said Sheree Waterson, Nasty Gal chief executive officer, in a statement. "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."
Famous for its "cool girl" aesthetic, Nasty Gal was founded in 2006 by Sophia Amoruso as an eBay shop for vintage clothing. It was lauded as one of the fasted growing and successful e-comm start-ups, heralded by the girl power-wielding image of Amoruso. The brand's vintage-inspired styles with modern silhouettes, paired with sassy marketing that thrived on social media, did well with a new generation that was attracted to real, raw attitude.
In 2014, the brand launched two brick-and-mortar stores and Amoruso became a New York Times best-selling author for her book Girl Boss -- part memoir, part entertaining how-to guide influenced by her unconventional experience becoming a business leader.
However, press caught wind of not-so-kosher goings-on in the company when former employees sued for wrongful termination. Four women claim they were fired, because they became pregnant, and a new suit has surfaced where a woman was fired for undergoing a heart transplant. Claims of a toxic working environment, discrimination, design knockoffs, and staff lay-offs across the board did not make the brand the girl power darling it once was.