- Kristopher Fraser
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With acquisition financing provided by Tiger Capital Group, the
brand-investment platform Go Global Retail has completed its purchase of
digitally native fashion retailer ModCloth from Walmart Stores, Inc. Go
Global announced the move this past October and closed on the acquisition
on January 27. Tiger’s cash infusion enabled the Los Angeles-based company
to move forward with its strategy of ramping up ModCloth’s competitiveness
in the premium fashion market according to Bob DeAngelis,
executive managing director at Tiger.
“Over the past few years, Tiger has increasingly focused on e-commerce
asset-valuation, monetization and capital-infusion,” DeAngelis said in a
statement. “We saw yet-another strong opportunity in Go Global’s
acquisition of ModCloth—a digitally native retailer that has posted annual
revenues of up to 150 million dollars and that enjoys strong brand equity
among consumers.”
ModCloth sells indie and vintage-inspired women’s clothing, shoes, handbags
and accessories in the 18- to 35-year-old demographic. Moving forward, Go
Global will further invest in ModCloth’s digital and supply-chain
capabilities and gain new insights into its operations via AI and
predictive analytics according to Jeff Streader, managing director of Go
Global Retail.
“We were pleased to partner with Tiger Group on this strategic e-commerce
transaction and are enthusiastic about ModCloth’s future as a freestanding,
independent fashion brand,” Streader added in a statement. “ModCloth is
known for its strong commitment to its core customers and for championing
values of female-empowerment and inclusivity. At Go Global, we’re confident
in ModCloth’s potential for robust national and international growth.”
“As with traditional brick-and-mortar retailing, businesses involved in
e-commerce need to constantly review their assets in the context of their
go-forward strategies,” said Tiger managing director Andrew Babcock in a
statement. “That could mean acquiring or selling e-commerce brands or
selectively liquidating online inventories. At Tiger, our book of
e-commerce business is growing quickly. We continue to build valuable
expertise in this space.”
photos: courtesy of Tiger Capital Group
