Boohoo heads to US courts ahead of Nasty Gal acquisition
Manchester etailer, Boohoo, will be in the US courts today, seeking approval to acquire American fashion brand, Nasty Gal.
Last month, the firm confirmed that it had entered into an “asset purchase agreement” to acquire a number of intellectual property assets from the retailer for US$20m, through its subsidiary Boohoo F Ltd.
It’s hoping the US court will rule that it can be appointed as the “stalking horse” bidder for the brand, which filed for Chapter 11 Bankruptcy Code protection back in November.
The sale of its assets will be governed by a court-approved bidding process, which will last at least 30 days. Boohoo added that its bid may not result in an acquisition, if there are “higher or more favourable” offers on the table during the auction process.
"Should we be successful in acquiring Nasty Gal it would represent a fantastic opportunity to add such a well-established, global brand to the Boohoo family. Following our recent acquisition of PrettyLittleThing.com we believe this would represent an ideal next step in inspiring an ever-growing range of young customers internationally,” stated Mahmud Kamani and Carol Kane, joint CEOs.