OMG, Kitty. It’s true…
8 am. Friday morning.
Cynthia staggers out of bed in search of coffee.
She happens upon Marcy who is full on hissing at the computer.
Cynthia (startled): OMG… what?!
Marcy: Hisssssssssss. Hisssssssssss. Hisssssssssss.
Cynthia (scared): What?! What’s happening?!
Marcy: Walmart is buying ModCloth.
Cynthia: Gasp. No way.
Marcy: Way. Hissssssssss. Hisssssssss. Hissssssss.
Cynthia checks Marcy’s info on the website and then stumbles out to the doorstep to get the LATimes.
She frantically scans the business pages.
She finds it.
She looks up.
Cynthia (horrified): OMG. Walmart is buying ModCloth!
Penelope Kitten passes out.
To be continued…
Quick Update. Sunday, March 19, 2017.
- Walmart/Jet.com bought ModCloth for about $50 million.
- Apparently, ModCloth has been losing money since 2015 and has had 6 rounds of layoffs in the past two years.
- ModCloth’s founder, Susan Gregg Koger, sent out a letter via email, the ModCloth blog, and Instagram explaining that the reason for the “sell-out” was indeed their lack of profitability and that the infusion of funds from Walmart will help get the company back on track. She portrayed herself as sad but hopeful.
- As of this past Friday, all ModCloth employee checks are signed from Walmart. The employees found out about the acquisition this past Wednesday. They were surprised.
- The reaction from customers has been swift. And, it is severe. Koger’s IG post has almost 1500 negative comments. Customers are deleting their ModCloth accounts, wishlists, email subscriptions, and follows on social media. Bloggers are abandoning their ModCLoth affiliate programs and listing alternative stores to shop.
- In an unrelated, yet strangely symbolic event, ModCloth’s pug mascot, Winston, died last month.
Stay tuned! We will have more on… all of this… and our own list of wonderful companies to purchase cat products from this week.
xo and meow, marcy + cynthia