Press commentary on how Nasty Gal imploded for the LA Times. Read the full article

On aggressive marketing spending

“When they turned that spending off, the growth vastly declined and revenue went down,” said Richie Siegel, founder of Loose Threads, a media company focused on fashion and technology. “I can spend $200 million to make $100 million in revenue, but that” doesn’t make for a sustainable business.

On Nasty Gal’s brand

“Nasty Gal is a California cool, young girl thing,” Siegel said, “and it was very unclear how much it was attractive around the country and around the world.”

On scaling ecommerce

In the ultra-competitive trendy fashion business, companies have to be operationally savvy to move products at a scale big enough to make a profit. Nasty Gal’s mostly young staff focused heavily on the creative side instead of the business side, Siegel said.

On leadership across ecommerce

“It was a big captain abandoning the ship as it’s sinking,” Siegel said. “She seemed to have prioritized her own brand over the company she helped build.”