A bid has emerged in the Nasty Gal bankruptcy case.
UK online fashion retailer Boohoo has offered to pay $20 million for the intellectual property and customer databases of Nasty Gal.
Nasty Gal estimates its fiscal 2016 revenue will reach $77 million, with gross profit of $33 million and EBITDA of negative $1.4 million, according to court documents.
The $20 million bid exceeds the approximately $15 million the company owes to its secured lender.
If the bankruptcy court approves Boohoo’s stalking horse offer, other buyers will still have an opportunity to make a bid. If any other offers emerge, Nasty Gal is proposing an auction be held in early February.
If Boohoo’s bid is rejected, it is asking for $700,000 in breakup fees and $250,000 in expense reimbursement.
Boohoo is the only company that has put in a concrete offer for Nasty Gal, despite extensive marketing efforts by investment bankers and widespread media coverage of the company’s need for capital or a buyer.
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