When ModCloth started, it was a quirky independent company that actually made cute plus-sized clothes, earning a dedicated customer base. But as Anna Merlan reported in 2017, the company went through a series of significant changes that altered the company’s self-described feminist ethos, the biggest being its acquisition by Jet.com, owned by Walmart. Now Walmart is reportedly selling the brand, with the company’s chief executive confirming that ModCloth has attracted interest from buyers.
Business of Fashion reports that Walmart is now “in the process of exploring potential opportunities.” The potential sale news comes after the brand has seen a “revolving door of senior managers,” BoF reports. Plans to open more brick and mortar stores, a process that began last year with a San Francisco location, have been “dialed back.”
In 2016 Walmart bought Jet.com for $3.3 billion in a move to ramp up its online commerce business, chasing Amazon’s success. But Recode reported in July that Walmart is going to suffer a projected loss of more than $1 billion for its e-commerce division. The sale of ModCloth is clearly a way for Walmart to try and recoup some of those losses.