Walmart Inc. has sold its Bonobos menswear line to WHP Global and Express Inc. for $75 million — $235 million less than what the retail giant paid for the business in 2017.
WHP, which owns brands such as Annie Klein and Joseph Abboud, will pay $50 million for the Bonobos brand, according to a statement on Thursday. Express, partially owned by WHP, will acquire the operating assets and related liabilities of Bonobos for $25 million.
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The deal adds to the list of fashion flops for Walmart, which has a record of acquiring apparel businesses only to later fold or close them. In 2020, the company announced the sale of its footwear website, Shoes.com, and its lingerie brand, Bare Necessities. Last year, it announced the sale of Modcloth, its women’s fashion apparel business.
“Bonobos joins the Walmart family to expand our assortment and expertise in menswear,” Walmart said in an email. Decided it was the right time to sell Bonobos.”
Andy Dunn, who founded Bonobos as a website in 2007, initially oversaw the brand after Walmart bought it, but left the retail giant in 2019.
Walmart has edged out other businesses with online origins, such as Bonobos. In February, the Bentonville, Arkansas-based company agreed to sell Dick’s Sporting Goods Inc. to outdoor gear and apparel retailer Moosejaw. Walmart bought Moosejaw in 2017 for approximately $51 million. Terms of the sale were not disclosed.
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The Bonobos deal is expected to close this summer. John Hutchison, head of Bonobos, will remain brand president and report to Tim Baxter, chief executive officer of Express.
“Bonobos is delivering double-digit sales growth and we plan to continue that momentum,” Baxter said in the statement.
Walmart stock was little changed after the close of regular trading in New York. Express shares soared 19%. By the end of trading, the apparel chain’s stock had fallen more than 30% in 2023.
back to the basics
Over the years, Walmart has often faltered in its efforts to sell apparel beyond essentials like socks and underwear. In 2010, the company vowed it was “going back to basics” by focusing on the “everyday needs” of customers, as a push to go more upscale failed to gain traction.
A year later, Walmart closed its New York apparel office as part of layoffs. A spokesperson said at the time, “We don’t need to be on Broadway to sell socks and underwear and T-shirts.”
The pendulum swung back in the form of a boom in e-commerce. Walmart buys Jet.com for $3.3 billion and Amazon.com Inc. brought in its founder Marc Lorre to compete.
Despite the missteps, Walmart hasn’t given up on its aspirations in apparel, and the category remains an important part of the company’s merchandise selection. The Bentonville, Arkansas-based retailer hired fashion designer Brandon Maxwell two years ago to entice shoppers with more stylish clothing. Last year, Walmart unveiled a new sleepwear and underwear line called Joyspun. Some of the brands it has acquired, such as the plus-size label Eloquii, are available on the company’s website.
The text of this story is published from a wire agency feed without any modification.
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