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The rapid rise and fall of Nasty Gal Inc., an online retailer once popular with millennial shoppers and venture capitalists, is culminating in a bankruptcy sale to a rival, the Wall Street Journal reported today. In less than a decade, Nasty Gal founder Sophia Amoruso transformed an eBay vintage store into a company that generated $85 million in revenue for the 2014 fiscal year. But the Los Angeles company’s swift growth led to stumbles. Leadership turnover and poor communication hurt its bottom line, according to interviews with 10 former employees. Some described the company culture as becoming “toxic,” referring to turbulence in recent years including several rounds of layoffs. The turmoil culminated in a November bankruptcy filing, with Nasty Gal preparing to sell its brand name and other intellectual property for $20 million to a rival fashion site, the U.K.’s Boohoo.com.

Family Christian, the biggest U.S. Christian bookstore chain, said yesterday that it was going out of business and planned to close its 240 stores across 36 states, Reuters reported. "Despite improvements in product assortment and the store experience, sales continued to decline," said Chuck Bengochea, the company's president. "In addition, we were not able to get the pricing and terms we needed from our vendors to successfully compete in the market." The chain filed for chapter 11 protection in February 2015 with more than $120 million in debt in the face of a sales slump amid growing competition from online stores.

HHGregg Inc., the 61-year-old seller of appliances and electronics, is preparing to file for bankruptcy as soon as next month as it grapples with slumping sales, Bloomberg News reported yesterday. The Indianapolis-based company announced last week that it was pursuing a range of strategic and financial options. HHGregg is still seeking an out-of-court solution that would allow it to stave off chapter 11. HHGregg’s quarterly revenue for the period ended Dec. 31 plunged 24 percent. In light of the challenges, the company said on Feb. 15 that it hired Stifel, Nicolaus & Co. and Miller Buckfire & Co. to help find ways to improve liquidity and stem the flow of red ink.

Toshiba Corp., responding to media reports, said today that it was not aware that its U.S. nuclear unit Westinghouse was considering filing for chapter 11 protection from creditors — an option analysts say could jeopardize the entire group, Reuters reported. The Nikkei business daily reported Toshiba was now looking at a potential chapter 11 filing as one of several options for Pittsburgh-based Westinghouse, as it grapples with cost overruns at two U.S. projects that are set to result in a $6.3 billion writedown. In theory, such a drastic step could help draw a line under problems in its nuclear business. But analysts and sources with knowledge of the matter say that even under a chapter 11 filing, Toshiba could still be on the hook for up to $7 billion in potential liabilities as it has guaranteed Westinghouse's contractual commitments — an arrangement typical for the nuclear industry.

Troubled telecom company Avaya Inc. has begun cutting off some pension benefits for retirees, a signal that these benefits may be on the chopping block in connection with its chapter 11 case, the Wall Street Journal reported today. In a letter to retirees, the communications company cited its recent chapter 11 filing to say that as of Feb. 1, it would stop paying so-called supplemental pension benefits to certain retirees until further notice. Some retirees recently received notice that March checks also wouldn’t arrive. An Avaya spokesman said the company continues to pay federally guaranteed pension payments but doesn’t “have the court’s authority to make supplemental pension payments…at this point in time.” He declined to elaborate on Avaya’s plans for these benefits, which are among the liabilities that companies often shed in bankruptcy.

U.S. consumer finance company J.G. Wentworth Co. has hired a financial adviser to help it address its debt burden, as fierce competition eats into its profits, Reuters reported yesterday. J.G. Wentworth, known for its catchy jingles and television commercials, has hired investment bank Evercore Partners Inc. to help it fix its capital structure, which includes an approximately $440 million term loan, the people said. J.G. Wentworth had $300 million drawn on its credit line as of Sept. 30. The Radnor, Pa.-based company buys future payments that consumers expect to receive from various sources including state lotteries, insurance companies and annuities, and in turn pays its customers a lump sum. J.G. Wentworth securitizes the future payments and sells them. Low interest rates have increased competition, J.G. Wentworth said in its 2016 annual report. The company has also been under investigation by the Consumer Finance Protection Bureau. Specialty finance firms like J.G. Wentworth and payday lenders were under scrutiny by the CFPB, but the future of that effort is unclear after ongoing court attempts to dismantle the consumer advocacy agency.