US retailer Nasty Gal has filed for Chapter 11 bankruptcy protection and founder Sophia Amoruso is resigning as executive chairman, according to reports.
The online retailer was founded in 2006 and raised $65m (£51m) throughout its 10-year history, including a $16m (£12.6m) Series C funding round in 2015 and $40m (£31.7m) Series B in 2012.
Amoruso wrote the book #GirlBoss in 2015 about starting her business from scratch.
“Our decision to initiate a court-supervised restructuring will enable us to address our immediate liquidity issues, restructure our balance sheet, and correct structural issues including reducing our high occupancy costs and restoring compliance with our debt covenants,” said Nasty Gal’s chief executive officer Sheree Waterson in a statement.
“We expect to maintain our high level of customer service and emerge stronger and even better able to deliver the product and experience that our customers expect, and that we take pride in bringing to market.”
Drapers has contacted Nasty Gal for comment.