WSG Brands buys Nasty Gal for $16 million

WSG Brands announced Tuesday it has acquired Nasty Gal from Debenhams Group for $16 million. Nasty Gal generated £12 million in gross merchandise value last year, about $16 million at press time. The brand also reported £400,000 in adjusted EBITDA over the same period.

Debenhams said the brand’s results were not material to the company and the sale aligns with its strategy to shift to a marketplace‑led model that uses less capital. WSG Brands plans to expand Nasty Gal’s assortment to include denim, footwear and bags, jewelry, activewear, swimwear, sleepwear, beauty, travel and additional lifestyle categories, mainly through licensing deals. The company earlier this year bought Allbirds in partnership with Aerosoles owner American Exchange Group, and acquired streetwear label Von Dutch two years ago.

“We see a tremendous opportunity to build upon that foundation, introduce the brand to a new generation of consumers and expand Nasty Gal into a global lifestyle brand while staying true to the attitude and individuality that have always defined it,” Jack Cheika, founder and CEO of WSG Brands said.

Boohoo was the sole bidder at the auction conducted as part of Nasty Gal’s 2016 bankruptcy. WSG Brands said in a press release Tuesday.

What we know

One of Allbirds’ new owners, WSG Brands, has acquired Nasty Gal from U.K. apparel company Debenhams Group, formerly known as Boohoo, for $16 million.
Boohoo acquired Nasty Gal in 2017 for $20 million.
Nasty Gal generated 12 million pounds (about $16 million at press time) in gross merchandise value last year and 400,000 pounds in adjusted EBITDA.
Nasty Gal was founded in 2006 by Sophia Amoruso, who began as an eBay seller of an eclectic collection of apparel finds and shoplifted garments.
In addition to this acquisition and the deal earlier this year to acquire Allbirds in partnership with Aerosoles owner American Exchange Group, WSG Brands bought streetwear company Von Dutch two years ago.