Vintage e-tailer Nasty Gal headed towards bankruptcy

Los Angeles - Sophia Amoruso's clothing business has taken a turn for the worst. The Los Angeles e-tailer, Nasty Gal, filed for bankruptcy on November 9, Wesdnesday.

The company filed in an effort to "address our immediate liquidity issues, restructure our balance sheet, and correct [structural] issues," chief executive officer Sheree Waterson told WWD. The company has been looking for buyers since May 2015 and yet has had no successes due to the current state of its business. At the moment, the company is hoping to gain approval for a loan from Hercules Technology Growth Capital Inc. The loan, if approved, will allow the company to continue operations as well as fulfill payroll on November 15.

Nasty Gal started as a online fashion retailer by founder Sophia Amoruso in 2006. Starting her business from eBay, Amoruso was able to turn Nasty Gal into a cult-favorite brand of Los Angeles. Although the brand has had successes, it's clear that the company is headed for a decline. Given the current state of the company, it's possible that Nasty Gal may have to cease operations soon.