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Global e-commerce retailer Modnique Inc. has acquired the principal assets of Totsy Inc., a New York-based private sale Web site dedicated to off-price children’s, infant and toddler apparel and related merchandise.
This story first appeared in the June 28, 2013 issue of WWD. Subscribe Today.
Terms of the transaction weren’t disclosed. Einaras von Gravrock, cofounder and chief executive officer of Redondo Beach, Calif.-based Modnique, said the acquisition includes the Totsy brand, customer list, vendor book, social media presence and about $3 million in inventory, the majority of which will be donated to KIDS (Kids in Distressed Situations).
Von Gravrock told WWD that customers logging on to Totsy.com will be redirected to Modnique’s site, at modnique.com, which will be updated to include a new Modnique Kids department, adding to its current offering of women’s and men’s apparel, accessories, footwear and beauty products.
He noted that Totsy had encountered financial difficulties in recent months and the company’s assets had been acquired from its lenders, who weren’t identified. Calls to Rho Ventures, which had previously held a stake in Totsy, weren’t returned by press time Thursday.
Founded in 2010, Modnique has emphasized serving a global audience of fashion customers with stylish products from U.S. brands and European designers. Originally a flash-sale site, it supplemented its events with less-time-sensitive offerings arranged according to classification at the end of last year.
“Most flash sites serve a particular niche and a particular locale,” the ceo said. “We saw a need to connect international brands with international buyers, and with the introduction of our shops in last year’s fourth quarter, we now have inventory that can stay on the site longer and give the customer the ability to come back and find a specific item at any time. It’s still a great selection at great prices.”
The acquisition of Totsy assets, he noted, provides for expansion of the business in several different directions. Modnique’s assortment of children’s, infant and toddler merchandise will be expanded; the Totsy customer base will be migrated to Modnique’s site, and Totsy’s customers will gain access to a broader and more global selection of merchandise both inside and outside the children’s category.
“This acquisition allows us to offer more brand partners international distribution, and it gives our customers access to great kids’ brands,” von Gravrock said.
Prior to the acquisition, Modnique did business with about 2,000 vendors and maintained a customer list of more than 1 million located in more than 150 countries. It has more than 300 employees working at its headquarters and satellite offices in Europe and Latin America.
Von Gravrock declined to specify Modnique’s sales but said it had maintained a growth rate of about 90 percent a year.