- Go Global Retail recently announced it is buying the assets of ModCloth from Walmart. These are the details.
Go Global Retail recently announced it is acquiring the assets of ModCloth — which is a digitally native retailer of unique women’s fashion and accessories. Launched in 2002, ModCloth offers exclusive indie and vintage women’s clothing, shoes, handbags, and accessories for women.
ModCloth will continue to operate out of its current operational set up under Go Global. Going forward, 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,” said Go Global managing director Jeff Streader.
ModCloth will be a freestanding independent fashion brand and will continue focusing on its core customers while championing values of female empowerment and inclusivity. Plus it will further serve their passionate buying community by celebrating their stories and offer a full range of sizes.
“Our team of experienced retail and brand practitioners will supplement existing management in areas of digital strategy, supply chain and operations,” added Go Global managing director Christian Feuer.
Walmart had acquired the assets and operations of ModCloth in March 2017 for an undisclosed amount. And the Go Global deal is expected to close later this year.
“We believe that ModCloth’s strong brand equity positions it for growth in the future,” explained Walmart Senior Vice President of Corporate Strategy, Corporate Development & Strategic Partnerships Ashley Hubka. “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.”
ModCloth was originally founded in a college dorm room by high school sweethearts Susan Gregg Koger and Eric Koger. Together they were able to scale the company to hundreds of employees and hit $150 million in revenue in 2014.
The acquisition was made through Walmart subsidiary Jet.com. Although Walmart had declined to specify how much that deal was worth, the retail giant said it was in the same range as its two previous purchases of online businesses, which were $51 million and $70 million at the time according to USA Today.