Walmart Sells Off Indie-Brand ModCloth As It Realigns Its E-Commerce Business

Walmart (WMT) has sold off its indie-inspired women’s apparel business, ModCloth, after earlier speculation that the retailer was reportedly looking to offload the brand. Financial services firm Go Global Retail bought the brand’s assets, which are geared toward women from 18 to 35 years of age.

Through the acquisition, ModCloth will continue its current operations, including stores and online presence, while Go Global will invest in the business’ digital capabilities. The investment by Go Global will include the addition of artificial intelligence and predictive analytics, the company said.

ModCloth was Walmart’s free-standing fashion brand that had a strong women empowerment and inclusivity element to its clothing collection, which is offered in a full range of sizes. Go Global said it is going to continue to focus on these core customers as it moves to make ModCloth a freestanding business.

Prior to the acquisition, ModCloth fell under Walmart’s Jet brand, which the retailer has been working to restructure as part of its e-commerce segment, Retail Dive reported. The text-based concierge service Jet has been courted with potential opportunities as of recently, which Walmart is reportedly considering, including selling the business, spinning it off, or partnering on, Bloomberg reported.

"We believe that ModCloth's strong brand equity positions it for growth in the future," Ashley Hubka, senior vice president of corporate strategy, development and partnerships at Walmart said in a statement. "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 Retail will acquire ModCloth from Walmart for an undisclosed amount. Walmart acquired ModCloth in 2017, also for an undisclosed amount. The transaction between Walmart and Go Global is expected to close later this year.

Shares of Walmart stock were down 0.91 percent as of 1:16 p.m. ET on Monday.