Go Global Retail announced its plans to acquire the assets of ModCloth from Walmart.
ModCloth offers exclusive indie and vintage-inspired women’s clothing, shoes, handbags and accessories for 18- to 35-year-old women, while Go Global Retail is a brand investment platform for strategic investors in the consumer sector.
After the acquisition, ModCloth will continue to operate out of its current operational set up, with Go Global Retail investing in its digital capabilities including artificial intelligence and predictive analytics. The deal is expected to close later this year.
“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,” Go Global’s Managing Director Jeff Streader said in a press release. “Our team of experienced retail and brand practitioners will supplement existing management in areas of digital strategy, supply chain and operations,” added Christian Feuer, managing director, of Go Global.
“We believe that ModCloth’s strong brand equity positions it for growth in the future,” added 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.”
Walmart acquired the assets and operations of ModCloth in March 2017 for an undisclosed amount. The terms of the Go Global deal weren’t released.
Back in July, it was revealed that the retail giant was looking to sell ModCloth because it was unprofitable. In fact, Walmart has projected $1 billion in losses for its online eCommerce division, on revenue of between $21 billion and $22 billion.
In addition, Walmart also announced that it plans to completely overhaul Jet.com, the online marketplace startup it bought in 2016 for $3.3 billion. The site failed to capture the sort of response that the company wanted. While Jet was supposed to reach urban dwellers and millennials, it has not driven traffic.