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How Nasty Gal Went from an $85M Company to Bankruptcy

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Re: How Nasty Gal Went from an $85M Company to Bankruptcy

#23
post #5
post #3

Can't read the article without a subscription to WSJ

Oh dear - they closed the loophole. It's a shame, but if it's something they need to do to survive then fair play. I do wonder if these should be permitted on HN now though...

> It's a shame, but if it's something they need to do to survive then fair play.

Depends on how much they value that google traffic, since google doesn't like being tricked into fake search results.

Re: How Nasty Gal Went from an $85M Company to Bankruptcy

#24

The most interesting part of this to me is the purchase by Boohoo.com, itself capitalising on legendary dotcom failure boo.com's branding. It sounds very much like the parent is running a business model very similar to the "one last draw" model Warren Buffet was so successful with earlier in his career. It might make a lot of sense for the right type of investor, too. The growth won't likely be there in the long term…

As someone who worked at Boo.com - escaping in Feb 2000 as its death become obvious to anyone, I don't think boohoo.com capitalises on boo.com - most people have never heard of boo.com..

Re: How Nasty Gal Went from an $85M Company to Bankruptcy

#26

The clothes were awful. It sounded like a good story from a distance, but if you looked at the catalog it was a definite maybe and if you saw the clothes in person you realized they used cheap materials and were photographed from the good angle.

Were the colors off as well? I have bought clothes from online retailers and the colors looked different in person.

Re: How Nasty Gal Went from an $85M Company to Bankruptcy

#28
post #15

Earlier quoted context omitted.

I believe if you click the 'web' link under the title of the article here on HN, it will take you to a Google search page which will (sometimes) show you other sources for the same article. Also, I've been getting around the paywall from Washington Post and NY Times etc. by right clicking on an article I know comes from their site and selecting 'Open in Incognito Window' in Chrome. The lack of cookie tracking gives m…

This no longer works reliably for the WSJ.

I can't edit my post, but here's a thread full of people saying the WSJ workaround no longer reliably works: https://news.ycombinator.com/item?id=13434938

Re: How Nasty Gal Went from an $85M Company to Bankruptcy

#29

The clothes were awful. It sounded like a good story from a distance, but if you looked at the catalog it was a definite maybe and if you saw the clothes in person you realized they used cheap materials and were photographed from the good angle.

One HN user wrote about why she liked them in a previous thread on Nasty Gal:

https://news.ycombinator.com/item?id=12923367

Re: How Nasty Gal Went from an $85M Company to Bankruptcy

#30

The most interesting part of this to me is the purchase by Boohoo.com, itself capitalising on legendary dotcom failure boo.com's branding. It sounds very much like the parent is running a business model very similar to the "one last draw" model Warren Buffet was so successful with earlier in his career. It might make a lot of sense for the right type of investor, too. The growth won't likely be there in the long term…

Revenue is vanity. Profit is reality. Selling $85MM in 2014 is nifty, but fashion industry is hard. Average EBITA is maybe 10%: http://www.mckinsey.com/industries/retail/our-insights/the-s... to realize how brutal it is. Let's piece this together... She had 280 FTE at 2013 and got into a lease for 500k sqft warehouse: http://www.inc.com/30under30/donna-fenn/nasty-gal-sophia-amo... At ~$60k/yr avg and we'll pretend a…

Revenue is often used as a vanity metric. On the other hand... revenue is tangible, profit is an accounting construct.
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