Walmart undoes positions in fashion. The US giant has agreed to sell the ModCloth pure player to Go Global Retail only two years after taking over the company, the latter explained in a statement. The amount of the transaction has not transcended.
Founded in 2011 by Jeff Streader, the former executive of VF, Guess and Billabong, Go Global is defined as an investment platform. Its particularity compared to other investment vehicles is that capital is provided by suppliers in Asia, especially in China.
Specifically, the company says it already has about forty strategic partners. The objective is that these factories are responsible for the production of the firms purchased while Go Global assumes the direction of the business. In declarations to WWD, Streader has defined the system as “an inverse integration of the value chain to reduce costs ”
The Go Global plan involves buying companies with a turnover of between fifty million dollars and 500 million dollars in all types of industrial sectors. ModCloth has been its first operation but expects to close at least two more this year.
With ModCloth, the company wants to invest in artificial intelligence and predictive analysis to boost the business and expand the company’s presence to new markets such as Europe and China.