Walmart Inc has announced the sale of its men’s clothing brand, Bonobos, to Express Inc and WHP Global for USD 75 million.
The price is extensively lower than the USD 310 million Walmart paid for the brand in 2017. Bonobos offers a range of men’s clothing items online, from suits and trousers to swimwear.
The acquisition comes after WHP Global partnered with Express earlier this year and acquired a 7.4 per cent stake in the company.
WHP Global will acquire the Bonobos brand for USD 50 million, while Express will buy the operating assets and related liabilities for USD 25 million, as per the terms of the deal.
The deal comes after Walmart struggled to make the brand profitable, which made it to the layoff of dozens of employees in 2019.
Since it has been focused on developing alternative revenue streams,including advertising and delivery, instead of expanding its brand assortment.
The deal is anticipated to close in the second quarter of the current fiscal year, and WHP and Express will enter an exclusive licence agreement, giving it the right to use the intellectual property obtained from WHP to run the Bonobos business.