It’s official. Walmart has acquired ModCloth, a 15-year-old online retailer beloved by its core customer base for its vintage-styled clothing and branding that promotes inclusiveness.
Recode reported on Wednesday that the deal was set to happen. Terms were not released, but industry sources previously said that ModCloth would be lucky to fetch a number around $80 million, which is about how much venture capital it had raised.
The company at one point claimed annual revenue of $150 million, but had struggled to operate profitably. The company also had debt coming due, sources said.
In a blog post, ModCloth co-founder Susan Gregg Koger described the deal as one that would “give us the necessary resources and support that we need as a business to grow. Growth allows us to reach more women, grow our community, and amplify our message. Our mission to help our customers feel like the best version of themselves continues.”
For Walmart, the deal is the latest in a string of acquisitions — including online retailers ShoeBuy and Moosejaw — meant to boost the selection of apparel on its subsidiary, Jet.com. While all of these sites will continue to operate independently, brands that sell on them will have the opportunity to sell through Jet’s website as well.