Walmart to Sell ModCloth
Walmart is selling ModCloth to Go Global Retail, just two years after acquiring it.
ModCloth, a digitally native retailer of unique women's fashion and accessories with a vintage or retro vibe, was founded in 2002 and its customer base is largely of the 18-35 demographic. Walmart acquired the assets and operations of ModCloth in March 2017 for an undisclosed amount.
The terms of the deal, expected to close later this year, were not announced, but ModCloth will continue to operate out of its current operational set up under under Go Global.
"We believe that ModCloth's strong brand equity positions it for growth in the future," said Ashley Hubka, senior vice president of corporate strategy, development and partnerships at Walmart. "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."
Go Global Retail will invest in ModCloth's 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," stated Go Global's Jeff Streader. "Our team of experienced retail and brand practitioners will supplement existing management in areas of digital strategy, supply chain and operations," added Christian Feuer of Go Global.