- Sara Ehlers |
As Nasty Gal is still headed towards its bankruptcy auction, the e-tailer still has some finalizing issues to settle. As last month British e-tailer Boohoo confirmed interest in acquiring the company’s assets, Nasty Gal’s creditors have now expressed that they want to be more involved in the e-tailer’s sale.
The company’s committee of unsecured creditors filed a limited objection in bankruptcy court, as reported by WWD. Last month, the fast-fashion company had received a bid for 20 million dollars from Boohoo. Due to the offer, Boohoo became the stalking horse bidder in the auction. According to the publication, the group is not trying to interfere with Boohoo’s bid on the company through this action, but are trying to gain more control with the terms of the sale. By the objection, the creditors are requesting more control on the terms of the purchase in order to protect the company’s value, should anything change with the deal.
Nasty Gal had entered bankruptcy last November after suffering financial challenges. The e-tailer was struggling to find a potential buyer at the time, as the value of the company had gone down from its previous high at approximately 77.1 million dollars per year. The company’s net worth significantly decreased, which made it harder to find interested buyers until Boohoo made its bid.