Nasty Gal Inc. is laying off employees and closing its brick-and-mortar stores in connection with the sale of its brand name, the Wall Street Journal reported yesterday. The online fashion retailer will shut down its two California-area stores, which opened in the past couple of years as part of the fast-growing company’s expansion. Nasty Gal plans to close these stores by Feb. 28, the expected closing date of the $20 million sale of its brand name and other intellectual property to U.K. rival Boohoo.com. In a Monday filing with the U.S. Bankruptcy Court in Los Angeles, Nasty Gal sought permission to terminate the leases to its stores on Melrose Avenue and in Santa Monica. The move would save the company from monthly rent expenses of more than $125,000, it said.
