Debenhams Group has completed the cash sale of fashion brand Nasty Gal and its intellectual property rights to New York-based brand acquisition and management company WSG Brands for $16 million (£11.85 million).
Nasty Gal generated a gross merchandise value (GMV) of £12 million during the year ended 28 February 2026, with Adjusted EBITDA of £0.4 million, Debenhams Group reported.
It described the label as a “non-core” and “not material” asset, adding that the disposal supports its transition towards a capital-lite, marketplace-led operating model while strengthening its balance sheet.
This marks Debenhams Group’s second disposal within five days. On 10 September, the group completed the £90 million sale of its Sheffield distribution centre to Primark.
Following the warehouse sale, Debenhams said it expected net debt to be negligible by the end of its financial year in February 2027. Its previous target, disclosed in July, was to bring net debt below one times Adjusted EBITDA over the same period.
“Our turnaround continues at pace,” said Dan Finley, Group Chief Executive Officer of Debenhams Group. “The disposal of this non-core asset aligns with our strategy and further strengthens the balance sheet following the £90m sale of our Sheffield Distribution Centre.”
Marketplace strategy drives portfolio changes
The online retail group, formerly known as Boohoo Group, is moving away from a stock-led model as it expands its marketplace platform and reduces fixed costs.
For FY26, Debenhams Group reported adjusted EBITDA of £53.3 million, up 35% year-on-year, while its pre-tax loss narrowed from £326.4 million to £108.3 million. Group GMV before returns fell 21.6% to £1.82 billion and revenue declined 24.7% to £917 million.
Debenhams Group hailed the results as a “year of significant and successful transformation” as it narrowed losses despite a further fall in sales.
In a subsequent trading update from June, the group showed continued progress in its multi-year turnaround strategy, with the Debenhams brand and PrettyLittleThing delivering the strongest performance improvements across the first quarter of 2026.
While Nasty Gal’s performance was not highlighted within the financial results, the brand was included in Debenhams Group’s US expansion in September 2025, when the label became available online through Macy’s, Bloomingdale’s and Nordstrom alongside Coast, Warehouse, Oasis and Karen Millen.
Later in September, Debenhams Group is due to report its first-half performance and its progress towards converting Adjusted EBITDA into reported profit.