June 25, 2008 - Sustainable apparel retailer Nau, which shuttered in May due to "a confluence of unfortunate events," has been bought out by a California company keen to make a success of its socially responsible business model, the Oregonian reports.

The buyer, Horny Toad Activewear, will operate Nau as a wholly owned subsidiary.

Nau pioneered an innovative store model that minimized overhead costs (and environmental footprint) by stocking only small amounts of product supplemented by in-store web kiosks to drive online sales. Critics charge that the company should have sold its product via existing retailers rather than focus on internet sales.

Nau has crafted a new five-year business plan calling for a leaner, more focused product lineup. The plan will receive capital support from Horny Toad.

"Now we have the ability to grow the business organically in relationship to customer demand," says Nau marketing chief Ian Yolles.