Walmart-owned discount retailer Jet.com has agreed to acquire women’s fashion retailer ModCloth, according to a Jezebel report. All ModCloth staffers will become Walmart employees as part of the sale, which will reportedly be finalized Thursday. Bay Area-based ModCloth is backed by several VC investors, including Norwest Venture Partners, Accel and Floodgate Fund.
On the surface, a global conglomerate like Walmart may be an unlikely partner for ModCloth, which is known for selling off-beat apparel and accessories, often from independent designers. But considering the company’s recent valuation nosedive, it’s possible the buyers simply smelled a bargain—and that ModCloth was willing to settle for a less-than-ideal acquirer. The clothing company was valued at $185 million in 2012, but that figure dropped all the way to $38 million with a $15 million Series C in 2015. As a result, ModCloth has gone through six rounds of layoffs in less than three years, per Jezebel.