Boohoo takeover has left Nasty Gal awash with controversy

Boohoo’s revival of once-popular fast fashion label Nasty Gal has saved the brand, however it has also left it awash with controversies including poor quality control, and fake advertising, according to Business Insider.

One shopper is taking Nasty Gal to court over claims that the company is inflating the value of clothing to unsuspecting shoppers.

Olivia Lee was enticed by a promotion on the site that claimed every item was 60 per cent off and purchased a pair of trainers.

The company continued to advertise that all items were somewhere between 40 and 60 per cent reduced depending on the day in the following months.

After two years since Lee bought the trainers for $34, the banner on Nasty Gal’s US site still advertises “60 per cent off everything – it’s now or never.”

The sale includes the pair of shoes that Lee purchased 24 months prior, listed as originally being sold for $60 but retailing for $24 instead.

“Nasty Gal’s ‘sale’ is not really a sale at all. It is a scam,” Lee’s federal suit reads, which is seeking class certification for all US consumers who purchased anything from Nasty Gal after 2017, the year after it was purchased by the Boohoo Group.

Boohoo has capitalised on a growing trend in the fashion industry which involves big fast-fashion brands cashing in on well-known fashion brands that are on the brink of liquidation and attracting customers that remember the old brand.

READ MORE: Boohoo ‘close to settlement’ in multimillion dollar lawsuit over fraudulent pricing

“It’s an actual business model that has developed in the past few years,” retail consultant David Brown told Business Insider.

“Numerous companies have figured out that you can take brands that have either declined to a point or have gone bankrupt, and there are some inherent values still left.”

However many consumers that are unaware of the change in ownership and management are often disappointed to find the brand they once shopped at, now owned by a new company, has little to do with its old roots and has become a “zombie brand.”

Nasty Gal declared bankruptcy in 2016, before being acquired by Boohoo for $20 million.

The company has since been plagued with complaints from consumers, another claiming that her $219 order from Nasty Gal included boots that had been worn previously, a dress with a flammable warning and a jacket that would not stop shedding its material.

Online reviews reveal the company’s clothing appears cheap and that customer service has been largely unhelpful after consumers have been sent the wrong items.

Others complained that clothes seemed to have been already worn, with several reviews claiming pants had arrived with visible bodily fluid in the crotch area.

“We have hygiene policies and procedure in place to try and avoid situations such as this, but on any occasion where an item is received that is not in perfect condition we work with the customer to resolve that issue as quickly as we can,” Boohoo responded to Business Insider.

The fashion giant also defended its fast-fashion model.

“I challenge the negative connotations that come with the words ‘fast fashion,'” the company wrote.

“Nasty Gal is actually on a huge path to push forward its sustainable product offering and by the end of this financial year approximately 20 per cent of our product will be sustainably produced, this will grow further each year.”

“We take customer complaints very seriously and will always look into any customer concerns around quality on a case-by-case basis.”

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