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Walmart has reportedly considered selling ModCloth and Bonobos, 2 years after buying them for a combined $360 million

Jul 3, 2019, 20:42 IST

Spencer Platt / Getty Inages

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  • Walmart has reportedly considered the sale of ModCloth and Bonobos, according to Vox.
  • Walmart ultimately decided against a sale of Bonobos, but will likely sell ModCloth this year, the report said.
  • Walmart has projected losses of more than $1 billion for its US e-commerce division in 2019, on revenue of $21 billion to $22 billion, according to the report.
  • Visit Business Insider's homepage for more stories.

Walmart has reportedly considered the sale of ModCloth and Bonobos, two of its biggest ecommerce acquisitions of the last two years.

Walmart will likely sell the women's clothing site ModCloth this year, according to a report by Jason Del Ray in Vox that cited multiple unnamed sources familiar with the matter. Walmart bought ModCloth for an estimated $50 million in 2017.

The Vox report said Walmart also recently considered - and ultimately abandoned - the sale of Bonobos after a private equity firm expressed interest in purchasing the men's clothing brand, which Walmart purchased in 2017 for $310 million.

The discussions were held against a backdrop of projected losses of more than $1 billion for Walmart's US e-commerce division in 2019, on revenue of $21 billion to $22 billion, the report said.

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Walmart did not immediately respond to a request for comment.

Read more: Walmart has gobbled up a slew of brands since 2010 - and it's all part of a strategy to take on Amazon and win over millennials

Walmart announced last month that it planned to overhaul Jet.com, the ecommerce startup it acquired in 2016 for $3.3 billion.

Walmart said it would move all Jet employees to Walmart.com, and in the process, Jet president Simon Belsham will be stepping down.

After purchasing Jet, Walmart made a string of acquisitions, including Bonobos, ModCloth, Parcel, Moosejaw, Hayneedle, Bare Necessities, and Art.com.

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