Boohoo unveils plans to snap up Nasty Gal brand
Online retailer boohoo.com has unveiled its latest acquisition as it revealed plans to snap up the brand of collapsed US fashion firm Nasty Gal in a 20 million US dollar (£16 million) deal.
The group is looking to buy the brand and customer databases of failed group Nasty Gal, which filed for bankruptcy in America on November 9.
It comes just weeks after boohoo.com acquired rival fashion website Pretty Little Thing for £3.3 million and upped its profit outlook following bumper Black Friday trading.
Mahmud Kamani and Carol Kane, joint chief executives of boohoo.com, said the Nasty Gal deal is an "ideal next step" for the group.
They added it was a " fantastic opportunity to add such a well-established, global brand to the Boohoo family".
Founded by Sophia Amoruso in 2006, Los Angeles-based Nasty Gal began as an eBay shop for vintage clothing.
It specialises in fashion for young women, or "fashion-forward, free-thinking young women", according to boohoo.com.
The deal, which is subject to an auction and still needs to be approved by a US court, will boost boohoo.com's international reach and fast-growing US business.
Nasty Gal made revenues of 77.1 million US dollars (£62.9 million) in the year to February 1 2016, but racked up losses of 21 million US dollars (£17 million).
Independent retail analyst Nick Bubb said: "With net revenue of 77 million US dollars in the year ended 1 February 2016, Nasty Gal would be an apparently cheap deal, although it remains to be seen what the underlying scale of the business will be post-bankruptcy."
Shares in boohoo.com leapt as much as 3% after the Nasty Gal deal announcement.
The stock has surged in recent weeks, helped by its profit cheer earlier this month.
Boohoo expects to deliver revenue growth of between 38% and 42% for the full year, up from previous guidance of between 30% and 35%.
It hailed robust sales across the Black Friday weekend, saying in its recent update that demand was strong and that peak season trading was "encouraging".