It's a down week for Nasty Women everywhere.
Online clothing retailer Nasty Gal is planning to file for bankruptcy, according to sources from Recode. Two of the company's board members, founder Sophia Amoruso (who serves as executive chairwoman) and director Danny Rimer, are also expected to step down. Nasty Gal plans to inform employees Thursday and will soon file publicly for Chapter 11.
The news doesn't come as a big surprise, especially after the events of the company's past two years: layoffs, a new CEO, and several lawsuits brought by former employees. Amoruso founded the company in 2006, when she was 22, as a vintage clothing eBay retailer. She was named to Inc.'s 30 Under 30 in 2013 and in 2014, and has published a memoir called #Girlboss.
Nasty Gal was funded by Index Ventures, which put in $49 million in 2012, until early 2015 (when Amoruso stepped down as CEO after eight years). In a video posted on the company blog, she questioned whether taking on the role of CEO was a good fit for her. And despite the new leadership of Sheree Waterson and $16 million in new funding from retail executive Ron Johnson, the company continued to struggle, and later laid off 10 percent of its staff.