Walmart to sell Bonobos for $75 million 

Walmart will sell the upscale men’s fashion retailer Bonobos for a reported $75 million to Express Inc. and brand management firm WHP Global, as it continues to unwind the online retail growth strategy set by Mark Lore, former CEO of Walmart U.S. eCommerce.

Walmart, under Lore’s tenure, paid $310 million in cash for Bonobos in 2017. Bonobos is predominantly an online fashion retailer but also operates 60 brick-and-mortar locations. Bonobos founder Andy Dunn joined Walmart in 2017 but left the company in January 2020.

The terms of the pending deal call for WHP Global to pay $50 million for the Bonobos brand, and Express will pay $25 million to acquire the operating assets and assume the related liabilities of Bonobos’ business.

“Bonobos is delivering double-digit sales growth, and we plan to continue that momentum while also realizing operating synergies and other economies of scale,” said Express CEO Tim Baxter. “This is a compelling addition to our brand portfolio, and I expect the transaction will be accretive to operating income and free cash flow positive in fiscal 2023.”

Express said John Hutchinson would become CEO of the Bonobos business once the transaction closes. Express operates 540 retail and outlet locations in the U.S. and Puerto Rico, and an online business and 13 UpWest retail stores that support the online business. WHP Global owns a 60% stake in Express Inc.

This deal also follows Walmart’s sale of outdoor retailer Moosejaw to Dick’s Sporting Goods. Walmart also sold Shoes.com to CriticalPoint Capital in 2020 and fashion e-tailer ModCloth to Go Global Retail in 2019 for undisclosed amounts. Walmart has also previously sold or closed other Lore projects such as Jet.com and JetBlack.

The Bentonville-based retailer still owns intimate retailers Bare Necessities, plus-size retailer Eloquii and home fashion retailers Hayneedle and Art.com, which were acquired during Lore’s tenure.