ModCloth acquired — again
A digitally native fashion brand once owned by Walmart has a new owner.
Nogin, which manages digital operations for fashion and consumer product companies, has acquired ModCloth from Go Global Retail. The deal marks the first acquisition of a consumer brand by Nogin, which has provided enterprise-level solutions and technology for such brands as Honeywell, Hurley, Bebe, Lululemon, True Religion, Yeezy and, most recently, Charming Charlie's.
Founded online in 2002, ModCloth sellsvntage-inspired, size-inclusive fashions and accessories for 18-to35-year-old women. Walmart acquired the brand from its founders in March 2017 as part of a move to increase its brand portfolio and target younger, higher-income shoppers. In January 2020, the retail giant sold the company to Go Global Retail. The new owners focused on ModCloth's online sales, closing its wholesale business and shuttering its handful of physical stores.
"We have a huge advantage of being able to get brands to be world class and profitable within 90 days of putting them on our platform,” said Jan-Christopher Nugent, CEO, Nogin, which was founded as Branded Online. “Investing where we see great potential is a natural extension," We are thrilled to free up ModCloth to focus on delivering great products and stories to the brand's community of passionate consumers, while staying true to its core values that champion female empowerment and inclusivity."
Nogin plans to reinvigorate ModCloth’s e-commerce operations using its proprietary suite of “intelligent commerce solutions.” The company said its platform allows brands to leverage advanced data analytics to grow their brand and sales.
In addition to managing the entire digital operation, Nogin offers its partners a suite of services that includes brand strategy, creative services, development, logistics and performance marketing.
Nogin has retained approximately 55 ModCloth employees and kept the leadership constant, with CMO Mary Jimenez taking the reins as chief executive. She will be joined by members of the brand's buying/brand/design/merchandising, logistics, tech/development/IT, accounting and HR teams who will be based in Nogin's Tustin headquarters, as well as customer service representatives in ModCloth's Pittsburgh, call center.
Tiger Finance, an affiliate of Tiger Group. provided a $6 million term loan to Nogin to help fund its purchase of ModCloth. Tiger Valuation Services is providing inventory analytics support to Nogin.
“We are pleased to have been able to assist Nogin in its first acquisition of a consumer brand, as this fast-growing company looks to diversify beyond its traditional role of managing the e-commerce operations of major brands," said Tiger Finance managing director Andrew Babcock. "This was a natural step in the company's progression and provided the perfect opportunity for Nogin to step in and buy an established online retailer with a very loyal and passionate following."