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Modcloth Was Bought by Walmart (Updated)

And its progressive, feminist customers are not happy about it.

March 17, 2017

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UPDATE (March 17, 2017 5:00 p.m. EST): We just got word straight from ModCloth that the speciality retailer has been acquired by Jet.com, which is owned by Walmart, in a deal that closed today. "For me, today is a bittersweet day," ModCloth co-founder Susan Gregg Koger wrote on the company's blog. "Today marks the beginning of the next stage of ModCloth’s journey. I am excited to announce that we are joining the Jet.com and Walmart family. This will give us the necessary resources and support that we need as a business to grow. Growth allows us to reach more women, grow our community, and amplify our message." Although Koger didn't outline many of the specifics of the merger, she did mention that future brick and mortar stores were on the horizon. (Right now the brand has just one in Austin, Texas.) The company also mentioned ModCloth’s 300+ employees will continue to be based in San Francisco, Los Angeles and Pittsburgh.

Originally posted on March 15, 2017

Online retailer Modcloth—known for its quirky styles and body-positive campaigns—is reportedly being bought by Jet.com, a company that was acquired by Walmart in August 2016. Modcloth employees have been told that Friday's paychecks will come from Walmart, Jezebel reports. The deal is set to close tomorrow. A formal, public announcement is planned for Friday.

Walmart's acquisition of Modcloth may seem like a strange pairing to many, given the fashion retailer's progressive, feminist message. Meanwhile, Walmart has faced frequent criticism for its poor labor policies and allegations of gender discrimination.

Last week, Modcloth's female employees participated in the women's strike on International Women's Day in a move to call attention to the lives of women, who are on "average receiving lower wages and experiencing greater inequities, vulnerability to discrimination, sexual harassment, and job insecurity." Modcloth also recently launched its "Style for All" campaign, showcasing women of different ages, ethnicities, sizes, and professional backgrounds. Last month, the retailer also called out the haters (and misogynists) behind a sexist billboard by sponsoring a contest for a replacement to take its place.

Walmart, however, has faced criticism for racist packaging practices, discriminating against pregnant employees, and paying wages that do not allow a full-time employee to earn a living wage. The Arkansas-based company was also sued for gender discrimination in its employment practices back in 2011 in a case that reached the Supreme Court. The case involved a Walmart employee who learned $10,000 less annually than a male employee with the same job title and experience. The woman was told that the male employee needed the higher wages since he had a family to support.

Modcloth fans and customers have already taken to Twitter to express their views of the acquisition; several have shown disappointment in Modcloth, a company that many of its customers believed shared their progressive values.