Debenhams disposes of Nasty Gal as part of balance-sheet overhaul

Debenhams confirmed that it has sold the Nasty Gal brand to US-based WSG Brands, a company that specializes in acquiring culturally relevant fashion labels. The retailer framed the deal as the disposal of a non-core asset intended to bolster its balance sheet amid an ongoing turnaround effort. This divestment comes shortly after Debenhams agreed to sell its Sheffield warehouse to Primark for a separate transaction.

The group, which also operates brands such as Karen Millen, Oasis, Warehouse and Dorothy Perkins, reported a pre-tax loss of £108 million for the last financial year, an improvement from the previous year's £326 million loss. Chief executive Dan Frinley said the turnaround “continues at pace” and that the Nasty Gal sale aligns with the company’s strategic goals.