Walmart announced last August that it had acquired Jet, a fast-growing e-commerce site. ModCloth CEO Matthew Kaness, his executive team, and the company's 300-plus employees will continue to be based in San Francisco, Los Angeles and Pittsburgh, and will join Walmart's USA e-commerce retail organization.
Jezebel first reported that Modcloth CEO Matthew Kaness revealed the news to his staff on Wednesday morning during an all-hands meeting at the company's headquarters. The move gives the company instant fashion cred among the smart, stylish women that flock to ModCloth for vintage-inspired, quirky styles. The source told Jezebel the news would be announced officially Friday, a day after it closes, Jezebel said. "I hope you will continue to join us as well on this next phase of our journey together".
"This is news that hasn't been shared with the public yet", Kaness added according to Jezebel.
With the acquisition of Jet.com over the summer, Walmart signaled its intention to be a major force in ecommerce and to better positioned to compete with established competitors like Amazon.
ModCloth was launched in 2002 by Susan Gregg Koger and Eric Koger while they were in college.More news: Initial jobless claims dip
ModCloth and its website will operate as a standalone yet "complementary" brand to Walmart's other e-commerce sites.
"Growth allows us to reach more women, grow our community, and amplify our message", Koger said. I think there's a lot of overlap culturally with what they're about and what we're about.
Due to the acquisition, designers selling on ModCloth will now have an opportunity to expand their client base through Walmart's e-commerce sites, the company said.
Who knows, maybe Modcloth will become to Jet.com what Kirkland is to Costco, which would be a win for everyone involved. People seem skeptical, but the decision to continue to support ModCloth or not is definitely one each individual will have to make for themselves.