"You never know how things are going to be interpreted", Dunn said.
Under the deal, the founder and CEO of Bonobos, Andy Dunn, will oversee Bonobos and ModCloth. "Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail".
Walmart, the world's biggest physical retailer, has been looking for more ways to grow its e-commerce business in competition with Amazon, and it sees fashion and targeting younger users as a key part of that strategy. "I can't believe my favorite clothing brand sold out this hardcore". Wal-Mart expects the acquisition will create "more new products for consumers and new ways to buy them". The company continues to operate each acquisition as a stand-alone site while the leaders of each online brand have been retained and placed in charge of their respective categories across Wal-Mart's platforms.
Walmart announced it has entered an agreement to acquire Bonobos, Inc.an apparel brand built on the internet, for $310 million in cash. Yet the mega-retailer is adding menswear company Bonobos, which started online and now has boutiques in cities and in Nordstrom stores, to its collection of online brands.
The acquisition, which is subject to regulatory approval, is expected to close toward the end of the second quarter or the beginning of the third quarter of this fiscal year.
Earlier this year, the company introduced two-day free shipping with a $35 minimum purchase. I'm thrilled to welcome Andy and the entire Bonobos team. It also means that Bonobos clothing is not available on Amazon.com. In 2012, Bonobos expanded its distribution partnering with Nordstrom, bringing Bonobos apparel into all 118-doors nationwide and to Nordstrom.com. Carol Spieckerman, a retail consultant and president of Spieckerman Retail, said Wal-Mart's purchase was important as it tries to boost its online market share to compete with Amazon.
Bonobos generates between $100 million to $150 million in annual revenue and attracts young, urban customers with its slim-fitting trousers, shirts, jackets, and suits.
For the transaction, Citi is serving as financial adviser to Bonobos, with Fenwick & West LLP acting as its legal adviser, while Weil, Gotshal & Manges LLP and Hogan Lovells are serving as legal advisers to Walmart.
"Ultimately, it's all just acquiring talent and capabilities to make Walmart.com, Wal-Mart e-commerce as a whole, all of these banners together run better", Kennedy said.