The company also opened a ,square-foot fulfillment center in Kentucky to handle its own distribution and logistics. And the once online-only retailer opened two bricks-and-mortar stores, in Los Angeles and Santa Monica. In the ultra-competitive trendy fashion business, companies have to be operationally savvy to move products at a scale big enough to make a profit. Those moves placed financial strain on the company without contributing much to its bottom line, industry watchers said Boohoo did not buy the two stores, which are expected to close soon.
Nasty Gal also informed the state of Kentucky that it planned to close the fulfillment center and lay off its 70 employees there by April Although the company said it was current on its debts, those interest payments probably ate heavily into its available cash.
Nasty Gal said it had tried to raise additional capital but was unsuccessful, according to bankruptcy documents. Amoruso served as executive producer. Employees have complained about her management style and lack of focus, with workers rating Nasty Gal 2. In , Amoruso stepped down as chief executive, although she remained on as executive chairwoman a role she resigned from last year when Nasty Gal filed for bankruptcy. In her wake, high-profile executives have come and gone, and the company has gone through several rounds of layoffs.
Nasty Gal is a prime example of how a company so intimately linked to its founder can often flail when that founder leaves — or when her attention splinters to other ventures. In the end, analysts said Nasty Gal was killed by many of the same factors that has caused other start-ups to falter, including Birchbox and Gilt Groupe.
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Shan Li covered the retail and restaurant industries for the Los Angeles Times. She previously reported on the California economy and the technology sector.
A Texas native, she graduated from the business school at New York University, where she decided journalism was much more interesting than a job on Wall Street. She left The Times in Strike at Kaiser Permanente averted two days before deadline.
When you realized that Nasty Gal was going down, what were you thinking? Did you blame yourself? Nasty Gal was fine before venture capital came in. It was a ride, and I was naive.
So, how has that experience affected your job as CEO this time around? So, when there are bumps in the road, I can correct pretty quickly. And I can implement from the beginning the things I know that need to happen.
Why did you choose to start a media company after running a retail empire? I picked up [media] pretty quickly after I left Nasty Gal. The book, by the sheer nature of it, was a piece of media; my podcast, Girlboss Radio, which came after that, was also a piece of media; and so was the Netflix series. So, it was natural for me to continue that conversation and create more content for our already highly-engaged audience. By the time I started Girlboss, it was already a strong brand.
You were selling things on eBay in order to pay bills. But this time is very different: you have money from selling Nasty Gal and you are famous. This is the first time in my career that my purpose and my opportunity have aligned, which is empowering women. Nasty Gal was about making women feel confident through fashion or style, and Girlboss is more about connecting them to one another, providing resources, tools and education for them to advance.
To me, that feels like a really natural next step, especially because I wish I had this when I was building my first company. I think fundraising is difficult regardless of what you have done in the past. This is my first time raising money. At Nasty Gal, people just threw money at me. So, which one is harder—raising fund for an early-stage startup or managing a big team like Nasty Gal? Humans are the wild card; they are the most unpredictable thing in business. Are people still asking you about Nasty Gal everywhere you go… like I just did?
Where do you see Girlboss going in the long term, perhaps after people are no longer talking about Nasty Gal? I think t he best thing we can do is actually be less obvious as a facilitator and letting the community build itself, like a church. I think women will always want to get together with the need for something like Girlboss.
Ultimately, I want to build a global brand that people identify with and that brings people together autonomously. Thanks for signing up! We get it: you like to have control of your own internet experience.
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