#Girlboss author Sophia Amoruso speaks about Nasty Gal’s bankruptcy and her resignation
SOPHIA Amoruso is the first to admit this week has been “the most eventful of her life”.
The founder of online fashion store Nasty Gal and the #GirlBoss movement, who has an estimated personal net worth of $280 million, is currently touring Australia sharing her corporate success story.
More than 900 women paid to hear the 32-year-old speak at a Business Chicks breakfast event in Sydney this morning, where she was introduced as an “e-commerce sensation” who “ranks higher than Beyonce” on Forbes’ Richest Self Made-Women list.
At 22, Ms Amoruso started an eBay store selling vintage clothing and the company quickly expanded in a multi-million dollar business.
As well as her clothing store, Ms Amoruso has written two books, #Girlboss and Nasty Galaxy, hosts a podcast called Girlboss Radio and is the subject of an upcoming Netflix series loosely based on her career.
Ms Amoruso’s entire brand is based on her commercial success, so things got a little awkward this morning when she was forced to reveal that Nasty Gal has filed for bankruptcy and she will resign as executive chairwoman.
During the Q & A session with Business Chicks CEO Emma Isaacs, Ms Amoruso burst into tears as she admitted she’s “probably made more mistakes than a lot of people have.”
The company has been in trouble for a while, with two rounds of redundancies in the past two years, and has been the target of lawsuits by several former employees.
Ms Amoruso herself stepped down as CEO two years ago and has been focusing on the growth of her personal brand.
“It’s wild. I didn’t expect this to happen while I was [in Australia],” she told the audience. “What is crazy is that filing for Chapter 11 relief [bankruptcy] was actually the most responsible thing to do right now, which is a bonkers thing to actually consider.”
She said the decision allows the company to continue operating while undergoing restructure.
“It’s been a decade since I started Nasty Gal, almost to the day, and I feel so privileged to have worked with the incredible talent who has come through the doors through this company,” she said.
“I just keep learning along the way. It’s all you can really do. I stepped out of the CEO role almost two years ago today, so I haven’t been on the day-to-day of Nasty Gal, but I’ve been on the board.”
It is unclear how Ms Amoruso’s personal net worth will affected by Nasty Gal’s decision to file for bankruptcy.
Ms Amoruso, who divorced from her husband three months ago, said she felt her decade of business experience will equip her to cope with the changes.
“Things that I would have freaked out about two years ago, I can just handle now and hopefully that’s how I feel two years from now. Hopefully this never happens to me again,” she said, before adding, “it’s my first business, I got really far.”
Despite the financial troubles, Ms Amoruso insists the Nasty Gal and Girlboss brands are “super strong”, which will aid the company when it eventually is sold off.
“If the company sells, which is probably what will happen in this process, there’s a Netflix series that’s going to be in 200 countries, marketing the s*** out of the Nasty Gal brand.
“So, somebody is going to be very lucky, and if they want me involved, I will be here and they can call me,” she said.
rebecca.sullivan@news.com.au
Originally published as CEO cries at awkward business event