Nasty Gal — Acquisition by WSG Brands (White Space Group New York)
Internationally recognised online fashion brand acquired by WSG Brands, illustrating how valuable brand equity and global intellectual property can command a multiple substantially above current earnings-based valuations.
Acquirer
WSG Brands (White Space Group New York)
Year
2026
Purchase Price
$16m (~£11.9m)
Revenue
£12m GMV (FY26)
Adjusted EBITDA
£0.4m (FY26 Adjusted EBITDA)
Implied EBITDA Multiple
~30×
Industry
Fashion & Apparel Brand
Transaction
In September 2026, Debenhams Group completed the sale of Nasty Gal to White Space Group New York, operating as WSG Brands, for total cash consideration of $16 million (approximately £11.9 million). The transaction included the Nasty Gal brand and its global intellectual property rights. For FY26, Nasty Gal generated approximately £12 million of gross merchandise value (GMV) and £0.4 million of Adjusted EBITDA. Using the approximately £11.9 million sterling value of the transaction, this implies a headline valuation of approximately £11.9m ÷ £0.4m = ~29.8× Adjusted EBITDA.
Why the Premium?
- Established, internationally recognised online fashion brand founded in 2006
- Valuable global intellectual property and trademarks
- Strategic value to WSG Brands, which specialises in acquiring and managing established consumer brands
- Future licensing potential of the Nasty Gal name
- Brand and IP value exceeding current operating earnings value
SME Takeaway
The approximately 30× EBITDA multiple should not be viewed as a typical trading multiple for a small fashion or apparel business. A significant component of the transaction value was likely attributable to Nasty Gal's established brand and global intellectual property rather than its current earnings alone. The sale illustrates how a fashion business with valuable intellectual property and brand recognition can transact at a substantial premium to a valuation based purely on current EBITDA. For a typical privately owned SME apparel company, factors such as sustainable EBITDA, customer concentration, inventory requirements, growth and owner dependence are likely to have a much greater influence on valuation. This is an exceptional brand/IP-led transaction and should not be treated as a representative EBITDA multiple for a typical fashion or apparel SME.
Sources
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.