Pittsburgh-Based ModCloth To Be Sold To JET & Walmart

PITTSBURGH (KDKA) — ModCloth, a trendy online retailer of vintage women’s clothing employing nearly 250 in Pittsburgh, has been sold to Jet.com, which was recently acquired by Walmart.

“We decided that the best opportunity for ModCloth to go forward is to be part of a larger organization,” ModCloth CEO Matthew Kaness told employees on Wednesday morning.

In a video conference with Pittsburgh employees, Kaness told local employees the news, saying it would be made public on Friday.

In an audio of the meeting obtained by KDKA-TV, Kaness tried to reassure employees:

“Nothing changes, so everybody is in the same role, with the same base salary, title, reporting etc.”

ModCloth was founded by Carnegie Mellon University graduates Susan Koger and her husband, Eric; although, they are no longer part of the company leadership.

The company has been known for its hip clothing for women of all sizes and its homey work environment that includes a pet-friendly workplace with dogs.

Kaness said the purchase by Jet and Walmart positions ModCloth to compete on a larger scale.

“The team at Jet is expecting us to build on the opportunity as a stand-alone business,” Kaness told employees.

“They want to compete and win against Amazon online, which is really exciting that we’ll be a part of that,” he said.

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While some employees have expressed their concerns privately about the Walmart connection — worrying about lower pay, alleged gender bias, and poor working conditions — Kaness was upbeat.

“I think over time this is going to become an incredible marriage,” he said.

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