In a plan to restructure its e-commerce, Walmart plans to sell ModCloth, a digitally native retailer of popular women’s fashion and accessories, to Go Global Retail. Walmart acquired the assets and operations of ModCloth in March 2017 for an undisclosed amount. 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,” said 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.”
Founded in 2002, ModCloth offers indie and vintage-inspired women’s clothing, shoes, handbags and accessories for 18 to 35-year-old women. Under Go Global, ModCloth will continue to operate out of its current operational set up. Go Global Retail will invest in ModCloth’s digital capabilities, including artificial intelligence and predictive analytics. As a freestanding, independent fashion brand, ModCloth will continue focusing on its core customers.
“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 Jeff Streader of Go Global. “Our team of experienced retail and brand practitioners will supplement existing management in areas of digital strategy, supply chain and operations,” added Christian Feuer of Go Global.
