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Sophia Amoruso Resigns from Nasty Gal and files for Bankruptcy

Sophia Amoruso is resigning from the eBay shop turned online retail giant she founded. Amoruso who is on Forbes’ Richest Self Made-Women list and even ranks higher than Beyonce has tearfully confirmed this saying: “It’s been a wild ride.”

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Only a few years ago, Amoruso was heralded by Forbes as ‘Fashion’s New Phenom’ while The New York Times has described her as ‘the Cinderella of tech.’ “I flailed a lot before I started this business at 22,” said the young entrepreneur, “It was my first business and I got really far.” “Filing for bankruptcy is actually the most responsible decision for the business.”

She has just released a second book Nasty Galaxy and her life story is set to be turned into a Netflix series. Despite the current situationthe online retailer did, however, experience a sudden boost in sales weeks ago thanks to Donald Trump calling Hillary Clinton a “nasty woman”. The brand then seized the opportunity.

However, these past couple of years has been tough, Nasty Gal laid off a lot of staff, experienced a change in CEO (after Amoruso stepped down and became executive chairwoman) and been sued by several former employees. The brand has also been accused of copyright infringement after allegedly copying the designs of brands including, Céline, Givenchy, Alexander Wang and emerging jewellery designer Wendy Brandes.

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“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 Nasty Gal CEO Sheree Waterson in a press release.

In an official statement, Nasty Gal assured it’s customers that their shopping experience will not be affected: “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,” said Nasty Gal CEO Sheree Waterson.

 

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