Nasty Gal was founded in 2006 by Sophia Amoruso, who started selling vintage clothing on eBay. Her sharp eye for style and irreverent brand voice built a devoted following. By 2012, the company generated $100 million in annual revenue. Amoruso became a media darling with her bestselling book "Girlboss."
Company Data
- Founded: 2006 — Sophia Amoruso
- Total Funding: $65 million
- Peak Revenue: ~$300 million (estimated)
- Failed: November 2016 (Chapter 11)
- Acquired by: Boohoo for $20M
The company's rapid growth masked deep operational problems. The shift from curated vintage to self-manufactured fast fashion alienated its original customer base. Quality issues plagued the in-house line. Marketing costs skyrocketed trying to compete with ASOS, Boohoo, and Fashion Nova. Multiple rounds of layoffs couldn't stem the losses. Boohoo acquired the brand for $20 million—far below peak valuation.
Key Lesson
Growth can kill brand identity. Pivoting away from your core purpose risks losing your most loyal customers.