One of Walmart’s digitally native brands is getting a new owner.
Walmart is selling ModCloth to Go Global Retail. The terms of the deal, expected to close later this year, were not announced.
The discount giant acquired ModCloth in March 2017 as part of a move to increase its brand portfolio and target younger, higher-income shoppers with brands not available on Amazon. But ModCloth, along with several other of the acquired brands, including Bonobos, have yet to turn a profit, according to Recode.
Founded in 2002, ModCloth sells exclusive indie fashions and its own vintage-inspired line of apparel and accessories, with a target audience of women 18 to 35. In addition to its e-commerce capabilities, ModCloth has opened several showroom-styledstores. It also has a deal with Nordstrom.
Go Global Retail describes itself has a brand investment platform for strategic investors in the consumer sector. It has worked with other apparel companies including Guess and Billabong, according to its website.
"We believe that ModCloth's strong brand equity positions it for growth in the future," said Ashley Hubka, senior VP 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 said that ModCloth will continue to operate as a freestanding, independent brand out of its current operational set up. Go Global Retail will invest in the fashion retailer’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.
ModCloth will continue focusing on its core customers; championing values of female empowerment and inclusivity; and further serving their passionate buying community by celebrating their stories and offering a full range of sizes, the company stated.