If you’ve been binge-watching “Girlboss” on Netflix, or you’ve loved shopping on NastyGal.com you doubtless know the story of Sophia Amoruso’s rise to power. But if you’ve only just see the title in your reccomended list, this is the story of the e-commerce powerhouse.
Sophia Amoruso started her eBay store of vintage punk finds at the tender age of 22. According to Forbes.com, within six years she was the CEO of e-commerce site, Nasty Gal, that had reached $300 million in sales. Nasty Gal opened two brick-and-mortar stores in southern California and a 500,000 square foot warehouse in Kentucky. The retail phenom sold the “rocker meets California bohemian” style to strong young females around the globe. The independently spirited retailer empowered women to remain true to their own style while collectively supporting Nasty Gal. Amoruso penned two books about her swift rise to fame and fortune, including the 2014 bestseller entitled #Girlboss. Forbes declared Amoruso one of America’s richest self-made women.
According to entrepreneur.com, by 2015, Amoruso had stepped down as CEO. By November 2016, Nasty Gal had filed for Chapter 11 Bankruptcy. Earlier this year, Nasty Gal shocked consumers with a 70 percent off site wide sale. By the end of the same month, Nasty Gal had been sold to British online retailer BooHoo for $20 million. The retailer did not purchase the two physical stores in California.
So what happened to the e-commerce darling? Extremely rapid growth through social media helped kick-start the start-up, but it could not maintain the consumer base. In the business of fashion, it is always easier to attract a consumer than it is to retain one. Although the #Girlboss preached female empowerment, the company was plagued with legal troubles. Female employees filed lawsuits alleging discrimination for issues including maternity leave and illness. Overwhelming lawsuits regarding copyright infringement kept the retailer in court and utilized precious money that was needed to maintain the daily business. Mismanagement is the downfall of any business, Nasty Gal is just the latest victim to fall.
Now, the online retailer is back in business and operations seem to be going well. Consumers in the database have even received a “40 percent off your next order” invitation to return shopping.
While the first season of the show focuses on Amoruso’s rise to retail fame, Vanity Fair reports that later seasons may grow to include this narrative, but only time will tell.