ModCloth is moving up and out from under Walmart’s thumb.
The digitally native women’s fashion brand is set to be acquired by Go Global Retail. Terms of the transaction were not disclosed, but the deal is expected to close later this year.
Go Global intends for ModCloth to continue operating under its current operational setup. Go Global will invest in the brand’s digital capabilities, including artificial intelligence and predictive analytics.
Founded in 2002 by Susan Gregg Koger and Eric Koger, ModCloth is best known for its vintage-inspired apparel, shoes and accessories for millennial women between ages 18 to 35 in sizes 00-28W. The company was acquired by Walmart Inc. in March 2017 for an undisclosed sum.
Word surfaced in July that the mass market discounter was looking to unload both ModCloth and Bonobos, the men’s fashion pioneer also acquired in 2017. The two brands along with Eloquii, the plus-size women’s fashion brand Walmart bought in October 2018, are all said to be unprofitable. Walmart elected to keep Bonobos.
“We believe that ModCloth’s strong brand equity positions it for growth in the future,” Ashley Hubka, Walmart’s senior vice president of corporate strategy, development and partnerships, said, adding that Go Global’s team and “scale-out strategy presents an attractive opportunity for employees and customers of this beloved brand.”
Go Global Retail is a brand investment platform for strategic investors in the consumer sector. Founded in 2016 by veteran fashion executive Jeff Streader—who has been involved with Guess, American Apparel and Billabong—Go Global’s partners include investment, retail and operational executives who create a “holistic” approach to investing.
Streader said, “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.”
Christian Feuer, a managing director at Go Global, hinted at what’s forthcoming: “Our team of experienced retail and brand practitioners will supplement existing management in areas of digital strategy, supply chain and operations.”