Nasty Gal continues towards bankruptcy

Earlier this month, founder Sophia Amoruso confirmed that her company was headed towards bankruptcy. Since then, it seems that there are more obstacles the trendy retailer will have to face through the bankruptcy filing.

The Los Angeles e-tailer filed for bankruptcy on November 9 on Wednesday. In court documents, WWD reported that gross revenue for the company totaled 93.43 million dollars. However, the company internally dealt with many financial issues over the past year as well as pending lawsuits. It was reported, according to the publication, that Nasty Gal bringing in venture capital may have brought upon the company’s downfall. “They add a ton of value to a business but the way in which they run a business and what they expect out of a business are very different from, say, private equity investors or other kinds of investors,” Mike Karanikolas, co-founder and co-chief executive officer of Revolve, said at the WWD Digital Forum Los Angeles.

More details about Nasty Gal’s stores and its locations has yet to be disclosed following the bankruptcy filing. For the immediate future, it seems that the stores are safe. Over time, there may be more confirmations of closures depending on how the bankruptcy filing progresses.