ModCloth and Bonobos might soon have a new home. According to Vox’s Recode, Walmart is losing a lot of ground to Amazon, and as such, the company is looking to cut down on its profit losses, which would include selling off one of the underperforming digitally-native brands it has bought in the past two years.
It is likely that ModCloth will be sold at a loss sometime this year. Apparently the company was not performing well to begin with when Walmart bought it for nearly $50 million in 2017. It hasn’t improved since, and likely won’t anytime soon.
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Meanwhile, the future of Bonobos is a bit less clear. Apparently, a private equity firm reached out about buying the brand, but Walmart wound up not going through with the sale. There was no mention about the future of Eloquii, which the company bought in 2018 and is said to be underperforming as well.