WSG Brands, the company that owns the Allbirds intellectual property, has acquired fashion brand Nasty Gal for $16 million, according to Retail Dive.

The deal adds another consumer name to the WSG Brands portfolio. Two years ago, the firm bought streetwear company Von Dutch.

WSG Brands plans to expand Nasty Gal globally through licensing deals and partnerships, the company said.

The $16 million price point underscores how far Nasty Gal's valuation has fallen since its mid-2010s peak. The brand filed for Chapter 11 bankruptcy protection in 2016 and was subsequently acquired by Boohoo Group in 2017 for approximately $20 million.

Under Boohoo's ownership, Nasty Gal operated primarily as an e-commerce fashion retailer targeting young women. The brand built its original following through social media marketing and influencer partnerships.

For WSG Brands, the acquisition follows a pattern of purchasing established but distressed consumer brands and monetizing their intellectual property through licensing arrangements rather than traditional retail operations.

The company acquired Allbirds' IP as the sustainable footwear maker struggled with declining sales and retail overexpansion. Allbirds announced in 2024 that it would transition to a licensing model, with WSG Brands taking control of the brand's intellectual property while the footwear company focuses on product development.

Marketing professionals watching the deal will note the growing trend of IP-holding companies acquiring legacy fashion brands at discounted prices. Rather than operating stores or e-commerce sites directly, these firms license brand names to manufacturers, retailers, and partners across categories and geographies.

Von Dutch, acquired by WSG Brands two years ago, has followed a similar trajectory. The streetwear label, which peaked in popularity in the early 2000s, has been relaunched through licensing partnerships in apparel and accessories.

The Nasty Gal acquisition suggests WSG Brands sees residual brand equity in the name despite its operational challenges. Founded by Sophia Amoruso in 2006 as an eBay vintage clothing store, Nasty Gal grew into a e-commerce phenomenon before its rapid decline.

The brand's story became widely known through Amoruso's 2014 memoir "#GIRLBOSS," which was later adapted into a Netflix series.

Financial details beyond the $16 million purchase price were not disclosed. WSG Brands has not announced specific licensing partners for Nasty Gal or a timeline for the global expansion.

The transaction reflects broader consolidation in the fashion brand licensing sector, where companies are acquiring distressed brands at low multiples and seeking returns through royalty streams rather than direct retail operations.

Source: Retail Dive (https://www.retaildive.com/news/allbirds-ip-owner-wsg-brands-buys-nasty-gal-sixteen-million/830520/)