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Nasty Gals: Bankruptcy Protection

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As Heidi Klum says on famous American reality competition show “In fashion one day you’re in and the next day you’re out…” in fashion nothing is eternal and during the last decade we have seen many fashion companies go through the walk of fame filing for bankruptcy protection because their business isn’t doing as god as usual. In this list, we find Nasty Gal, Aeropostal, and sports authority.
The most recent case of a company filing for bankruptcy protection is the one of clothing brand Nasty Gal. Although it was a surprise for many customers, it didn’t surprise the retail and tech groups. “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 Sheree Waterson, Nasty Gal’s chief executive officer. The company has been going through a stage of lay-offs since 2014, legal issues, and bad press.
Sports authority, once the nation’s largest sporting goods retailer, has also closed almost 500 locations in the United States. They …show more content…
Aeropostale used to be the most wanted brand for teens since their prices were lower than Abercrombie and Fitch and American Eagle. One cause of their decline is due to that teenagers are fleeing the brand in multitudes. Aeropostale clothing has been the same for years, and they haven’t really developed any innovation in their clothing for their customers. They don’t carry the same stylish weight it used to, fashion evolves every day, and they got stuck with the same styles. Nowadays, teenagers are not into the labels or logos on clothing as they used to be. Shopping at thrift stores have become very popular nowadays, and even though Aeropostale have reduced their prices they are not ‘cool’

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