Boohoo.com were approved by a US court yesterday to complete the agreement to purchase certain intellectual property assets and customer databases from failed US retailer Nasty Gal.
The retailer was founded by Sophie Amoruso in 2006 and was based in Los Angeles, California. Prior to its ultimate closure, it was reported that it had a global presence in 180 countries and 3.5 million social media followers.
Boohoo’s $20M (£16M) bid received final approval by the US Bankruptcy Court’s bidding process, so Boohoo.com benefits from a set of highly valuable assets to incorporate into its existing ever-growing marketing database.
Although the bidding process had been specified by the US Bankruptcy Court, Nasty Gal’s counsel advised Boohoo that no qualifying bids had been received, and therefore the auction would not now take place.
Boohoo’s shares have been steadily rising since January 2015, today standing at £1.40, many financial analysts are recommending the shares as a “Buy” rating in the wake of another recent take-over of retailer Pretty Little Thing.
XCM’s Director Luke Ibbetson commented “This is a very exciting acquisition for Boohoo. While they continue to grow at a rapid pace directly through the traditional Boohoo brand this is another exciting way of increasing their market share and active buyer base.” Luke went on to add “Along with Boohoo Man this widens the appeal of the breadth that the Boohoo business now offers its consumers. We are all eager at XCM to start monetising the Nasty Girl data and roll out some very interesting campaign ideas”