In a recording of a company meeting provided to Jezebel (presumably by a ModCloth employee), ModCloth CEO Matthew Kaness announced that Jet.com has acquired the clothing retailer. This news wasn’t set to be released publicly until Friday, and the deal isn’t set to close until tomorrow, but it has already caused a bit of stir with ModCloth customers who supported the company based on its independence and feminist message.
ModCloth has been a hit with many women seeking alternatives to big box retailers that didn’t necessarily cater to their individual apparel needs. Plus-sized women, nerdy women and women who love vintage-style clothing found ModCloth a refreshing source of fashion for their lifestyles, creating a community-focused and -driven site that provides affordable, fashionable options for women of any size. Founded by Susan Gregg Koger and Eric Koger in a college dorm room in 2002, the indie company was based on Gregg Koger’s love of thrift shopping.
Walmart’s Jet.com acquisition made big waves last year in the e-commerce world, and their purchase of Moosejaw Mountaineering in February signals a serious commitment to their competition with Amazon. Jet.com has made their own purchases under Walmart’s guidance: Shoebuy joined the online marketplace in January, and now ModCloth.
Jezebel reached out to ModCloth, Walmart, and Jet.com for comments, but so far has received no response. ModCloth is set to be purchased for between $50 million and $75 million, much less than its previous fundraising efforts, which had netted them $78 million from investors.