Debenhams Sells Nasty Gal to White Space Group as Part of Strategic Shift
British fashion retailer Debenhams has sold its U.S.-based brand Nasty Gal to New York-based private equity firm White Space Group (WSG) for $16 million in cash. The sale is part of Debenhams' strategy to transition toward a leaner, marketplace-led business model that reduces capital and inventory requirements while increasing cash generation. Nasty Gal was acquired by Debenhams — then known as Boohoo Group — out of bankruptcy in 2017 for around $20 million. The brand's performance has since declined significantly; it reported a gross merchandise volume (GMV) of £12 million and adjusted EBITDA of £400,000 in fiscal 2026, far below its peak sales exceeding $100 million in 2012. WSG plans to revitalize Nasty Gal by expanding it into a lifestyle brand targeting both Millennials who grew up with the label and Gen Z consumers. WSG CEO Jack Cheika emphasized that the firm will focus on strategic partnerships rather than broad licensing, aiming for long-term growth across multiple product categories.
