Debenhams Group (AIM:DEBS) has completed the sale of its Nasty Gal brand, including global intellectual property rights, to White Space Group New York, trading as WSG Brands, for $16 million in cash.
Nasty Gal generated gross merchandise value of £12 million in the last financial year, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £0.4 million.
The online fashion group, formerly known as boohoo (AIM:DEBS), described the brand as non-core and not material to the wider business.
The disposal follows the £90 million sale of the Group's Sheffield Distribution Centre, announced on 10 September, and fits its stated shift toward a capital-lite, marketplace-led model.
"Our turnaround continues at pace", said chief executive Dan Finley, adding that the deal "further strengthens the balance sheet" following the warehouse sale.
Between the two transactions, Debenhams Group has raised over £100 million in the space of a week, sharpening its focus on the marketplace strategy central to its turnaround plan.
News Intelligence what this means for the company
Debenhams Group has sold the Nasty Gal brand to WSG Brands for $16 million in cash, completing a second major asset disposal within a week alongside the £90 million Sheffield distribution centre sale. The company is executing its stated shift toward a capital-lite, marketplace-led model; combined, these two transactions have raised over £100 million and directly support management's deleveraging agenda, with net debt targeted below 1.0x adjusted EBITDA by year end FY27.
The Nasty Gal disposal is immaterial in isolation—the brand generated £12 million in gross merchandise value and only £0.4 million in adjusted EBITDA in the last financial year—but it signals disciplined portfolio pruning and accelerates cash generation for debt reduction. The pace of balance-sheet actions (two major sales in seven days) demonstrates management execution on its turnaround strategy.
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