One of the most talked-about rising companies in retail is reportedly filing for bankruptcy

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Hot clothing company Nasty Gal is reportedly filing for bankruptcy, Re/code reports.

Founder Sophia Amoruso, who founded the company as an eBay shop in 2006 when she was 22, will also step down as executive chairwoman.

The once-promising hip retailer for young women has been through some tumultuous times in recent years.

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Amoruso stepped down as CEO in 2015, saying the growing fashion company needed a leader with more experience in day-to-day operations. She was replaced by Lululemon alum Sheree Waterson.

Since then, the company has had layoffs. Former workers complained of a toxic environment.

The company was once extremely successful, with Bloomberg giving it an estimated worth of $100 million.

The company received an additional $16 million in funding last year from former JC Penney CEO Ron Johnson and Index Ventures.

See the struggling department stores of 2016:

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Struggling department stores
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Struggling department stores
TORONTO, ONTARIO, CANADA - 2016/03/08: Sears store entrance, is an American chain of department stores. Known for selling high quality clothing article from shoes to shirts. (Photo by Roberto Machado Noa/LightRocket via Getty Images)
Macy's Inc. signage is displayed at a department store in New York, U.S., on Monday, Feb. 22, 2016. Macy's Inc., the largest U.S. department-store company, is scheduled to report fourth-quarter 2015 earnings before the opening of U.S. financial markets on February 23. Photographer: Michael Nagle/Bloomberg via Getty Images
J.C. Penney Co. signage is displayed outside of a store at the Gateway Shopping Center in the Brooklyn borough of New York, U.S., on Saturday, Aug. 8, 2015. J.C. Penney Co. is scheduled to release earnings figures on Aug. 14. Photographer: Michael Nagle/Bloomberg via Getty Images
UNITED STATES - JUNE 09: Customers enter the Dillards department store at Parkdale Mall, in Beaumont, Texas, Wednesday morning, June 9, 2004. A judge declared a mistrial in a lawsuit brought against Dillard's Inc. by 17 black shoppers in Texas who claimed that security guards at the department store chain harassed them because of their race. (Photo by Scott Eslinger/Bloomberg via Getty Images)
MIAMI, FL - APRIL 19: A Nordstrom sign is seen outside a store on April 19, 2016 in Miami, Florida. Nordstrom on Monday said in a cost-cutting measure they are expecting to lay off 350 to 400 people. (Photo by Joe Raedle/Getty Images)
The sign outside the Kmart store is seen in Broomfield, Colorado November 19, 2009. Sears Holdings Corp posted a narrower-than-expected quarterly loss November 19, 2009, helped by the first increase in same-store sales at its Kmart unit in four years. REUTERS/Rick Wilking (UNITED STATES BUSINESS)
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Mounting competition might have led to the company's decline.

"Since their beginnings, companies like Nasty Gal and Birchbox [which laid off employees last week] have led with innovation. And so yes, perhaps they grew too quickly with innovation. And now there are other market disruptors in each of these categories that they now have to compete with," Valerie Davis, industry expert and senior vice president of paid media at digital marketing agency PM Digital, wrote in an email to Business Insider in February.

Re/code says competition from similar sites like Tobi could be hurting the business.

In her memoir #GIRLBOSS, Amoruso said she never planned on running a huge company.

"I was 22 and, like most 22-year-olds, I was looking for a way to pay my rent and buy my Starbucks chai. Had someone shown me the future of where Nasty Gal would be in 2014, I would have gasped in revulsion, thinking, Oh, hell no, that is way toomuch work," she wrote.

Mallory Schlossberg contributed to this story.

Now see young Americans' favorite retail brands of 2016:

25 PHOTOS
Top retail brands for millennials
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Top retail brands for millennials

24. Levi's 

Photo via AP

23. Calvin Klein

Photo via Getty

22. Ralph Lauren

Photo via AP

21. Michael Kors

Photo via Getty

20. Walmart

Photo via Shutterstock

19. Macy's

Photo via AP

18. Vans

Photo via AP

17. Old Navy

Photo via Shutterstock

16. Converse

Photo via AP

15. Adidas

Photo via Shutterstock

14. Gap

Photo via PA Wire

13. Under Armour

Photo via Getty

12. Bath & Body Works

Photo via Getty

11. Nordstrom

Photo via AP

10. Target

Photo via Alamy

9. Urban Outfitters

Photo via PA Wire 

8. J.Crew

Photo via AP

7. H&M

Photo via PA Wire

6. Sephora

Photo via Shutterstock

5. Lululemon

Photo via Getty

4. Zara

Photo via Getty

3. Forever 21

Photo via Shutterstock

2. Victoria's Secret

Photo via Getty

1. Nike

Photo via AP

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