Debenhams has sold women’s fashion brand Nasty Gal for 16 million US dollars (£11.9 million) as part of turnaround efforts to return the business to a profit.
The group, which also owns Boohoo and Pretty Little Thing, said it had completed the sale to US company WSG Brands.
Nasty Gal was bought by Boohoo nearly a decade ago for 20 million US dollars (£14.8 million).
The acquisition came after the brand had filed for so-called chapter 11 bankruptcy protection in the US.
It marked a downturn in the fortunes of the once-fast-growing brand that was founded by Sophia Amoruso, an American entrepreneur whose autobiography was adapted into the Netflix series Girlboss.
Debenhams said the sale reflected the disposal of a “non-core” asset that will help strengthen its balance sheet.
It comes a week after the company announced the sale of its Sheffield warehouse to Primark for £90 million, which plans to use the site to support home deliveries.
Debenhams is driving a turnaround in a bid to return the company to a profit.
It made a pre-tax loss of £108 million for the last financial year, but this was reduced from the £326 million loss reported the prior year.
Boohoo and Debenhams offer a range of products from sub-brands like Karen Millen, Oasis, Warehouse and Dorothy Perkins.
Chief executive Dan Frinley said the group’s turnaround “continues at pace” and that the Nasty Gal sale “aligns with our strategy and further strengthens the balance sheet”.
The buyer, WSG Brands, describes itself as a company that acquires and manages “culturally relevant brands” that have opportunities to grow, and already owns US fashion brand Von Dutch.
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