Debenhams has sold its women’s fashion brand Nasty Gal to the US company WSG Brands for just under £12 million. The transaction marks a change in ownership following Debenhams’ acquisition of the label in 2017, when it purchased Nasty Gal out of bankruptcy for £15 million.

Nasty Gal was originally founded by Sophia Amoruso as a small eBay shop during her college years in California. Over time, it grew into a well-known online retailer, attracting collaborations with celebrities such as Emily Ratajkowski and Cara Delevingne. Despite this, the brand has recently faced increasing competition from low-cost Chinese fast-fashion companies like Shein, impacting its market share among younger consumers.

Alongside Nasty Gal, Debenhams’ youth-oriented portfolio includes brands like PrettyLittleThing, which have struggled to maintain their customer base in the rapidly evolving fashion sector. In the most recent financial year, Nasty Gal generated £12 million in sales and reported a profit of £400,000.

The sale to WSG Brands represents Debenhams’ effort to streamline its holdings amid challenging market conditions for youth-focused fashion retailers. WSG Brands, which owns a range of fashion labels, will now take over the operations and development of Nasty Gal. Further details about the terms of the deal or future plans for the brand have not been disclosed.