Nasty Gal - the online fashion empire founded by Sophia Amoruso - is reportedly filing for bankruptcy.
Recode reports that the e-commerce company is planning to file for Chapter 11 bankruptcy protection. According to the tech news site's source, Amoruso is also resigning as executive chairwoman. A Nasty Gal spokesperson did not immediately respond to The Hollywood Reporter's request for comment.
Amoruso first started Nasty Gal as an eBay store in 2006 and grew it into a booming business (the company's sales were up to $128 million in 2012, according to Forbes) with more than 200 employees. Nasty Gal opened its first retail location on Melrose Avenue in 2014 and and then a second store in Santa Monica the following year.
Since then Nasty Gal has had a rocky few years. The e-comm laid off 10 percent of its staff as part of a company-wide restructuring plan in February; faced several lawsuits from former employees; and experienced a change in CEO (Amoruso stepped down from the role in January 2015, promoting Sheree Waterson into the position).
In the meantime Amoruso has been promoting her second book, Nasty Galaxy, a visual tome filled with illustrations, photos and short essays. Her first book, #Girlboss, which is part memoir and part how-to guide on running a business, went on to become a New York Times best-seller in 2014. Amoruso recently teamed up with Courtney Love again on a holiday party collection that's now available online.
Amoruso's next project will involve working with Netflix on the comedy series #Girlboss, inspired by Amoruso herself, starring Britt Robertson as the Nasty Gal founder.