Manchester-based online retailer Boohoo has completed the acquisition of US-based retail brand Nasty Gal, using a £12 million loan from HSBC.
The acquisition gives Boohoo access to Nasty Gal’s intellectual property and customer database, supporting its international expansion plans and enhancing its supply chain and distribution options in the US.
Mahmud Kamani and Carol Kane, joint CEOs of Boohoo, said: “[Nasty Gal] represents an exciting opportunity to accelerate our international offering and inspire an ever-growing range of young customers in the US and around the world.”
Nasty Gal was founded in Los Angeles in 2006 by entrepreneur Sophia Amoruso. It ran into difficulty last year, despite posting a turnover in excess of £62m.
The deal marks the company’s second acquisition in less than three months, after it took a £3.3 million stake in growing fashion brand PrettyLittleThing in December 2016.
Ben Andrews, Managing Director of Large Corporate Banking in the North for HSBC, said: “Boohoo is another Manchester success story and one of the world’s fastest growing etailers.
“International expansion is the natural step for Boohoo. The global nature of retail makes customer data and insights extremely valuable. This acquisition has given Boohoo an important foothold in the US market and marks another important milestone in Boohoo’s growth.”
Grown from Manchester’s best kept fashion secret to a global retail giant, Boohoo targets millennial shoppers with cutting-edge fashion at affordable prices.