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When the New York Times profiled LA-based e-tailer Nasty Gal over the weekend—touting founder Sophia Amoruso's tech prowess and the phenomenal growth of her company, which the rest of the fashion world has been writing about for at least a year—we figured this was another "the Times is on it" moment. But buried deep in the second page of the piece, writer Nicole Perl Roth dropped a bit of a bomb: Apparently Nasty Gal is considering an Urban Outfitters buyout.
Perl Roth has sources that say Urban Outfitters recently contacted Ms. Amoruso about a potential acquisition. Asked about that, Amoruso confirmed, "We're talking," Perl Roth writes.
The writer got opinions from a handful of tech analysts—some who were willing to be identified and some who weren't—on whether this would be a good move for Nasty Gal. Most seem to think she should consider the acquisition. As one source put it, "Nasty Gal is playing on a short-term fashion trend that will be difficult to sustain on the public market."
"They're the hot new thing, but I do think it's risky," a Forrester analyst agreed. "With this type of hype, either they are looking for a big fat acquisition or a blockbuster I.P.O."
Update: Nasty Gal reached out to us with the following statement: "We're committed to what we're building here and while it's always flattering to get phone calls, at this point Nasty Gal is not for sale."
· Naughty in Name Only [NYT]
· Nasty Gal Becomes the Rare Fashion Site To Offer Free Overnight Shipping [Racked]
· Nasty Gal and 7 Other Startups Who Are Disrupting Fashion [Racked]