Walmart is planning on selling ModCloth, their online apparel store which they bought in March of 2017 for an undisclosed amount, to Go Global Retail.
Go Global’s Jeff Streader said: “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.”
Christian Feuer of Go Global said: “Our team of experienced retail and brand practitioners will supplement existing management in areas of digital strategy, supply chain, and operations.”
Ashley Hubka, Walmart’s senior vice president of corporate strategy, development and partnerships said: “We believe that ModCloth’s strong brand equity positions it for growth in the future. 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 founded in 2002 by high school sweethearts Susan Gregg Koger and Eric Koger, who initially operated the business out of a college dorm room. Today, the company has offices in Pittsburgh and Los Angeles. Their primary market is women, ages 18 to 35.
Go Global Retail is a brand investment platform for strategic investors in the consumer sector, founded in 2016. They are focused on finding perspective opportunities and investing in them in order to create value for investors and acquisitions alike. Their partners include such likes as an investment, operational, and retail executives from all over the world, all working in unison in order to expand in the turbulent world that is global retail. They have worked with other apparel companies, such as VF Corp., Guess, and Billabong.
The deal is expected to close later this year. ModCloth is expected to continue working as they already have, with Go Global Retail investing in their digital capabilities, most notably – artificial intelligence and predictive analytics.
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