ModCloth Just Laid Off Almost 15 Percent of Its Staff
ModCloth, the online clothing retailer, laid off 70 employees yesterday. The Los Angeles-based company has raised $63.7 million since it launched in 2002, including investment from Accel Partners and First Round.
TechCrunch says the company, which focuses on indie and vintage designs, does not plan on changing its focus:
Apparently the layoffs affected all three company offices (San Francisco, Pittsburgh, and Los Angeles) and represent an effort at restructuring and consolidation — but they don't indicate a broader shift in direction.
An anonymous tipster who wrote in to Valleywag says that part of the problem lies with ModCloth CEO Eric Koger, who cofounded the company with his wife, Susan Gregg Koger. Somewhat contrary to the tipster's claims, Koger's academic background appears to be in marketing and entrepreneurship.
It's in trouble, running constant sales and struggling to turn a profit. The CEO is an engineer without a head for marketing and brand and as a result the company is suffering. Moral [sic] is at an all time low these days. It's a shame because overall the concept is great, they are just failing on the execution.
Fast Company named ModCloth one of the most innovative companies in 2013, noting that the online shop was "growing at more than 50% annually, and the Kogers raised $25 million last year to fund a significant expansion."
Yo, if any #Modcloth expats need any help finding a new job or need help getting on their feet, DM / @ reply me. I'd like to help.
— mitch (@msprout) July 16, 2014
This post is breaking, we will update if we learn more. If you have any information about the ModCloth layoffs, please email tips@valleywag.com.