Just two years after acquiring ModCloth, Walmart is selling the brand.
The retail giant has agreed to hand over the women’s apparel company to brand investment firm Go Global Retail. Although terms were not disclosed, the deal is expected to close late this year.
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“We believe that ModCloth’s strong brand equity positions it for growth in the future,” said Ashley Hubka, SVP of corporate strategy, development and partnerships at Walmart, in a press release. “We feel good about the progress at ModCloth and believe that Go Global’s team and scale out strategy presents an attractive opportunity for the employees and customers of this beloved brand.”
Walmart, through subsidiary Jet.com, snapped up ModCloth in March 2017 in a bid to broaden its portfolio, expand its digital presence and attract younger shoppers. The brand, which was founded in 2002, is recognized for its vintage-inspired apparel in a full range of sizes at affordable prices. Along with its online site, ModCloth had opened showroom stores last year and also sells its products on Nordstrom.
A Vox report in July noted that the Bentonville, Ark.-based chain had been in discussions with potential buyers about the possible sale of ModCloth — along with menswear brand Bonobos — as the brand had failed to turn a profit. (The outlet added that sources pegged the sale to happen this year.)
In the release, Go Global shared that ModCloth would continue to operate as an independent fashion brand. The firm is expected to invest in its digital capabilities, including artificial intelligence and predictive analytics.
“We believe that together with current management, ModCloth has the ability to become a stronger player in the premium fashion market, nationally as well as internationally,” Go Global managing director Jeff Streader added.
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