(Filed Under wholesale Lingerie News). When Nasty Gal, the prominent fashion retailer, filed for Chapter 11 bankruptcy protection last week, more than two dozen firms involved in intimate apparel were affected.
In all, the store, which was founded in 2006, listed about “1,800 creditors, equity holders, and other parties-in-interest,” in its filing with the court in Los Angeles, where it is based. Nasty Gal has an extensive on-line following as well as two brick-and-mortar stores in California. And in a recent article, Forbes estimated its sales in 2015 “surpassed $300 million.”
At this early stage, only a few companies have made claims as to exactly what they are owed, but Nasty Gal has filed a “Master Mailing List of Creditors” with the court. Several companies involved in intimate apparel and related product areas are mentioned, including Betsy Johnson, Bring It Up, Bristol Six, Commando, Fantasy Lingerie, Fleur Du Mal, For Love And Lemons, Grupo Espiral (which now uses the Mapalé) name, Indie Swimwear, Klauber Brothers, Kore Swim, Leg Avenue, Lolli Swim, Neva Nude, Oh La La Cheri, Pastease, Pretty Polly, Reebees Swimwear, Sensual (which uses a variety of names including Icy Hot and IHL), Timex Garments of Sri Lanka, Tori Praver Swimwear, Viva Usadaisy Swimwear, Western Fashion and Youmita.
In announcing the bankruptcy, Sheree Waterson, Nasty Gal CEO, declared, “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. 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.”
The company also reported it “has been exploring strategic partnerships with other strong brands and will continue to explore these options throughout the restructuring process. The company expects to attract a new equity partner or sponsor to take the company forward with a healthy balance sheet. However, with or without a strategic partner, the brand is expected to emerge from Chapter 11 and continue to serve its extensive and growing customer base.” It added that “customers and employees should see no changes in the day-to-day operations.” — NM
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