Boohoo.com to win Nasty Gal as no other bidders emerge
It looks like Boohoo.com's bid for the assets of failed US peer Nasty Gal will succeed with the UK-based fashion e-tailer saying Monday morning that no competing bids have emerged.
The company announced on December 28 that it had entered into an asset purchase agreement to acquire certain intellectual property assets and customer databases from Nasty Gal for $20m.
The deal was governed by a US Bankruptcy Court approved bidding process and Boohoo has now been notified by Nasty Gal's counsel that “no acceptable, qualifying bids have been received for the intellectual property assets and customer databases and, therefore no auction will take place.”
So what happens now? The firm said that subject to final approval by the US Bankruptcy Court, expected on or after February 8, boohoo expects to acquire the brand. Assuming it all goes smoothly, the transaction is expected to complete on the last day of this month.
It will be financed through a combination of Boohoo's existing cash resources and a new bank debt facility of up to $20m.
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