Women’s clothing and accessories retailer ModCloth has been acquired by Nogin, a provider of outsourced ecommerce for major fashion and consumer product companies. Founded in 2002, ModCloth offers exclusive indie- and vintage-inspired women’s clothing, shoes, handbags and accessories for 18- to 35- year-old women of all sizes.
The digitally native retailer has changed ownership several times over the last few years. In 2017 ModCloth was sold by its founders to Walmart as the big-box chain made an ecommerce play by acquiring a host of digital-first brands. Just three years later, in 2020, Walmart sold ModCloth to brand investment platform Go Global Retail, which is now selling it to Nogin.
Tiger Finance, an affiliate of Tiger Group, provided a $6 million term loan to Nogin to help fund its purchase of the ModCloth assets from Global Retail for an undisclosed sum. Additionally, Tiger Valuation Services is providing inventory analytics support to Nogin.
“We are pleased to have been able to assist Nogin in its first acquisition of a consumer brand, as this fast-growing company looks to diversify beyond its traditional role of managing the ecommerce operations of major brands,” said Andrew Babcock, Managing Director of Tiger Finance in a statement. “This was a natural step in the company’s progression and provided the perfect opportunity for Nogin to step in and buy an established online retailer with a very loyal and passionate following.”
Originally founded as Branded Online, Nogin has provided enterprise-level solutions and technology for major brands including Honeywell, Hurley, bebe, lululemon, True Religion, Yeezy and, most recently, Charming Charlie.
“We have a huge advantage of being able to get brands to be world-class and profitable within 90 days of putting them on our platform,” said Nogin CEO Jan-Christopher Nugen in a statement. “Investing where we see great potential is a natural extension. The seamless partnership with Tiger paves the way for ModCloth to focus on delivering great products and stories to the brand’s community of passionate consumers, while staying true to its core values that champion female empowerment and inclusivity.”