Oil's up [again], and stocks are down—but hey, on the good news front new life has been breathed into Nau, the eco-clothing company that ran out of cash in early May after little more than a year in business. Proving that there's still hope for struggling start-ups, Horny Toad, another lifestyle clothing company, swooped in and acquired what's left of Nau.

But can Horny Toad actually turn it around? Rememeber, Nau blew through a whopping $35 million in funding in a mere 14 months. Many analysts suspect that it was their rapid growth, pricey green fabrics, expensive price point, and strange "Web Front" system, where customers made purchases in-store using the Internet. By the time they closed their door, they were expanding because they needed more stores and more sales just to break even.

Clearly, there's a lot to fix. Yet, while Horny Toad's clothing is equally pricey ($200 t-shirts) and equally green—the signs so far suggest that they get it. Here's how they say they're revamping Nau's business plan to start:

"We intend to do some things differently. We're going to start small and grow the business organically in relationship to the demand for our product. We'll continue to sell through the web, but we're also going to partner with select retailers who share our common goals. We will not be operating our own retail stores, at least not in the near term."

What's less cool is that they've renamed the company Nau, Version 2.0. Considering that its parent company is named Horny Toad, you think they could come up with something better.